On 1st January 2012 X drawn of Rs. 20,000 on Y for three months. X discounted the bill with bank for Rs. 19,900. On due date, the bill was dishonoured. For dishonour in the books of X. Bank account will be credited by
A. Rs. 19,900
B. Rs. 20,000
C. Rs. 20,100
D. Rs. 19,800
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Which one of the following receipts is of revenue nature?
A. Amount realised from the sale of investments
B. Dividend received on investment
C. Amount borrowed from a bank
D. Compensation received from municipal corporation for the acquisition of land for the construction of road
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Authorised share capital is
A. Capital amount paid-up by share holders
B. Maximum amount of capital for which shares can be issued by the company
C. Total Share capital of the company
D. Total amount called-up on share capital
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In what order are the followingassetsshown in the balance sheet of a company?
A. ii, i, iv, iii
B. i, ii, iii, iv
C. iii, iv, i, ii
D. iv, iii, ii, i
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The main objective of accounting standards is to
A. Prepare the accounting reports easily understood by the common man
B. Comply with the legal formalities
C. Harmonize diversified accounting practices
D. Comply with the requirements of the International Accounting Standards (IAS)
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Amount spent on an advertisement campaign, the benefit of which is likely to last for three years is a:
A. Capital expenditure
B. Revenue expenditure
C. Deferred revenue expenditure
D. Contingent expenditure
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Deferred revenue expenditure is associated with
A. An expenditure for entertainment of executives
B. Past expenditure made by a company now adjusted from the current profit
C. Expenditure which is revenue in nature is spread over a number of years
D. An expenditure which cannot be taken into account due to non-availability of a cash
E. It is a recurring expenditure of a business organization
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The main objective of Accountancy is to know about the:
A. Profit or Loss and Assets and Liabilities of the business
B. Position of the Stock of Goods
C. Position of Cash
D. Errors and frauds of the employees
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What is the correct sequence of the following actions required for the preparation of financial accounts?
A. 4, 2, 1 and 3
B. 2, 4, 3 and 1
C. 2, 1, 4 and 3
D. 4, 2, 3 and 1
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The Accounting Standard No. 2 of the International Accounting Standards Committee is on the subject of
A. Valuation and presentation of inventories
B. Depreciation Accounting
C. Information to be disclosed in financial statements
D. None of the above
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Financial activities in a cash flow statement as per AS-7 do not include
A. issue of shares
B. buy back of shares
C. purchase of building
D. dividend paid
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Which one of the following is a revenue expenditure
A. Cost of extension of factory building
B. Legal cost of purchase of a building
C. Purchase of freehold building
D. Cost of painting old building
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Operating Leverage and Financial Leverage of a firm are 3 and 2, respectively. If sales increase by 6%, then earnings before tax will rise by:
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Which one of the following is not correct?
A. Margin of Safety = P/V ratio Profit
B. P/V Ratio = Change in sales Change in Contribution × 100
C. Break-even point in units = Contribution per unit Fixed cost
D. Required sales to earn desired profits = P/V ratio Desired profit
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Machine Hour Rate method of charging depreciation is useful when:
A. Ouput can be effectively measured
B. Use of asset can be measured in terms of time
C. Utility of the asset can be directly related to its productive use
D. Entire production process is mechanised
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Over capitalization is . . . . . . . . than undercapitalization.
A. Less dangerous
B. More dangerous
C. Not dangerous
D. None of the above
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Which one of the following methods of Inflation Accounting has been proposed by Sandilands Committee of UK?
A. General Price Level Method
B. Specific Price Level Method
C. Current Cost Accounting Method
D. Generally Accepted Accounting Principles
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Given,
2014 2015
Current Assets
Rs. 5,00,000
Rs. 3,20,000
Current Liabilities
Rs. 3,60,000
Rs. 4,00,000
The decrease in working capital will be:
A. Rs. 1,20,000
B. Rs. 2,20,000
C. Rs. 3,20,000
D. Rs. 20,000
Select an option to see the answer and solution.
Allahabad company limited forfeited 50 shares of Rs. 10 each. Rs. 6 per share were paid on then. Out of these 10 shares were re-issued at Rs. 6.50 Per share fully paid up. Amount transferred to capital reserve will be
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Given below are two statement, one labelled as Assertion (A) and the other as Reason (R) Assertion (A): In accounting, a distinction is made between the business and the owner.Reason (R): Accounting concepts are based on self-consciousness and not on subjectivity.
A. Both (A) and (R) are correct and (R) is the correct explanation for (A)
B. Both (A) and (R) are correct but (R) is not the correct explanation for (A)
C. (A) is correct (R) is incorrect
D. Both (A) and (R) are incorrect
Select an option to see the answer and solution.
