Debtors = Rs. 8,400
A. 45 days
B. 49 days
C. 75 days
D. 86 days
Select an option to see the answer and solution.
Which of the following is/are feature(s) of equity share capital
A. dividend is payable only if company has earned profit
B. dividend become payable only if such payment has been recommended by board of directors and passed by the Annual General Meeting of Company
C. both, dividend is payable only if company has earned profit and dividend become payable only if such payment has been recommended by board of director and passed by the Annual General Meeting of company
D. None of these
Select an option to see the answer and solution.
The convention of conservatism implies that:
A. Expected future losses must be provided for
B. Revenue must not be recognised unless it is accrued
C. Both the above A and B
D. None of the above
Select an option to see the answer and solution.
Redeemable Preference Shares of Rs. 2,00,00 are to be redeemed at par for which purpose fresh Equity Shares of Rs. 80,000 are issued at a discount of 10%. What amount should be transferred to Capital Redemption Reserve Accounts?
A. Rs. 72,000
B. Rs. 1,20,000
C. Rs. 1,28,000
D. Rs. 2,00,000
Select an option to see the answer and solution.
Which one of the following is Activity Ratio?
A. Net Profit Ratio
B. Current Ratio
C. Debtor Turnover Ratio
D. None of these
Select an option to see the answer and solution.
If cost is Rs. 48,000 and gross profit is 20% on sales then calculate amount of gross profit?
A. Rs. 12,000
B. Rs. 60,000
C. Rs. 8,000
D. Rs. 24,000
Select an option to see the answer and solution.
The depreciation of fixed assets is computed on their
A. Book value
B. Market value
C. Realizable value
D. Scrap value
Select an option to see the answer and solution.
A company wants to redeem 9% 450 debentures of the face value of Rs. 100 per debenture at a premium of 10%. How many shares of the face value of Rs. 10 is to be issued if they are issued at a premium of 10%:
A. 4,000 share
B. 4,500 share
C. 5,000 share
D. 5.500 share
Select an option to see the answer and solution.
Capitalization method of valuation is used for the valuation of
A. Shares only
B. Goodwill only
C. Shares and Goodwill both
D. Fixed assets only
Select an option to see the answer and solution.
The current account of a partner
A. may have a debit or a credit balance
B. will always have a debit balance
C. will always have a credit balance
D. will never have a balance
Select an option to see the answer and solution.
The definition of accounting will bring out the following functions:
A. 3, 1, 4, 2
B. 3, 1, 2, 4
C. 4, 1, 3, 2
D. 1, 4, 3, 2
Select an option to see the answer and solution.
Which one of the following is not the object of preparing Funds Flow Statement?
A. To show the results of current financial management
B. To show how general expansion on business has been financed
C. To show the earnings of the business over a period of time
D. To illustrate the relationship between profits from operations on the one hand and raising of new capital or contracting term loan on the other
Select an option to see the answer and solution.
In the absence of specific direction cash paid by a new partner to purchase his share of goodwill, will be apportioned by the old partners in
A. their old profit sharing ratio
B. their sacrificing ratio
C. their capital ratio
D. none of the above
Select an option to see the answer and solution.
Generally accepted basis of Valuation of a fixed asset is:
A. Replacement cost
B. Net realisable value
C. Historical cost less depreciation
D. Cost or market value whichever is lower
Select an option to see the answer and solution.
Increasing trend in general pricelevelis known as
A. depreciation
B. inflation
C. profit
D. pricing
Select an option to see the answer and solution.
In the absence of any agreement to the contrary, the partners have to share profits:
A. In the ratio of their contribution to the capital of the firm
B. In the ratio of time devoted by them to business
C. In the ratio of sales effected by each of them
D. In equal proportion
Select an option to see the answer and solution.
Which of the following accounts should be credited if a debt becomes irrecoverable?
A. Profit and loss a/c
B. Debtors a/c
C. Bad debs a/c
D. Sales a/c
Select an option to see the answer and solution.
From investor's point of view, the cost of capital is:
A. Interest Rate
B. Market Value
C. Yield of Capital Sacrifice
D. Stock Exchange Value
Select an option to see the answer and solution.
Which of the following items will have a debit balance:
A. Income received in advance
B. Bank loan
C. Prepaid insurance premium
D. Reserve for doubtful debts
Select an option to see the answer and solution.
Capital structure ratio
A. Equity : Preference
B. Equity : Reserve
C. Equity : Debt
D. Long term debt : Short term debt
Select an option to see the answer and solution.
