Given,
Total Assets Turnover
4
Net Profit
10%
Total Assets
Rs. 50,000
Net profit will be
A. Rs. 15,000
B. Rs. 10,000
C. Rs. 25,000
D. Rs. 20,000
Select an option to see the answer and solution.
In the event of the death of a partner, the accumulated profit and losses are shared by the partners in their
A. old profit sharing ratio
B. new profit sharing ratio
C. capital ratio
D. equal ratio
Select an option to see the answer and solution.
All the following are benefits of Accounting Standards except
A. AS cannot override the statute
B. AS reduce to a reasonable extent confusing variations in the accounting treatments used to prepare financial statements
C. AS facilitates comparison of financial statements of companies
D. AS may call for disclosure beyond that required by law
Select an option to see the answer and solution.
Which reflects changes in the working capital?
A. Balance sheet
B. Sales
C. Fund flow statement
D. Profit
Select an option to see the answer and solution.
Which of the following account is credited when shares are issued at a premium?
A. Share allotment account
B. Share forfeited account
C. Share first call account
D. Share premium account
Select an option to see the answer and solution.
A machine with a written down value of Rs. 10,000 has been sold for Rs. 13,000. The amount realized is a:
A. Capital receipt and profit involved should be transferred to capital reserve
B. Revenue receipt
C. Capital receipt and profit involved should be transferred to general reserve
D. Capital receipt and profit involved should be transferred to Profit & Loss A/c
Select an option to see the answer and solution.
Which of the following account's balance will not be transferred to realisation account?
A. Provision for bad debts
B. Debtors
C. Goodwill
D. Cash and Bank
Select an option to see the answer and solution.
Which of the following items is a current liability:
A. Arrears of wages
B. Redeemable preference share
C. Share premium
D. Provision for machinery depreciation
Select an option to see the answer and solution.
Statement I The profit and loss account shows the financial results of the concernfor a period.Statement II In profit and loss account, indirect expenses are charged against the gross profit.
A. Both statements are correct
B. Both statements are incorrect
C. Statement I is correct, but statement II is incorrect
D. Statement I is incorrect, but statement II is correct
Select an option to see the answer and solution.
A transaction results in the flow of funds
A. when a non-current asset is purchased out of a current assest
B. when debentures are redeemed on cash
C. when preference share capital is issued
D. in all the above cases
Select an option to see the answer and solution.
Which of the following equation is not correct
A. Cost of goods sold + closing stock - purchase = opening stock
B. Opening stock + Purchase - closing stock = cost of goods sold
C. Opening stock + purchases + closing stock - cost of good sold
D. Closing stock + cost of goods sold - purchase = opening stock
Select an option to see the answer and solution.
Dividend policy of a company mainly concerns with
A. Only 1
B. Only 2
C. Both 1 and 2
D. Neither 1 nor 2
Select an option to see the answer and solution.
While computing profit before incorporation operating expenses are divided on the basis of
A. Revenue and capital expenditure
B. Time period
C. Sales ratio
D. Capital Ratio
Select an option to see the answer and solution.
Which one of the following is not a part of the Profitability Ratios:
A. Operating Ratio
B. Rate of Return on Capital Employed
C. Inventory Turnover Ratio
D. Gross margin/Sales Ratio
Select an option to see the answer and solution.
Match the items of
List-I with those of
List-II and indicate the correct answer:
List-I (Accounting Standard) List-II (Relationship)
a. AS-6
1. Accounting for Consolidated Financial Statements
b. AS-3
2. Accounting For Fixed Asset
c. AS-10
3. Depreciation Accounting
d. AS-21
4. Accounting For Cash Flow Statement
A. a-2, b-4, c-3, d-1
B. a-3, b-4, c-2, d-1
C. a-4, b-3, c-1, d-2
D. a-1, b-2, c-3, d-4
Select an option to see the answer and solution.
The Partnership Deed provides for a salary of Rs. 7,000 per month to partner X. It will be
A. Credit to Profit and Loss Account (Adjustment Account)
B. Credited to the Current Account of Partner X
C. Credited to Salary Payable A/c
D. Debited to Capital A/c of X
Select an option to see the answer and solution.
A and B invest Rs. 2,00,000 and Rs. 1,00,000 respectively in a partnership, and agree to divide profit and loss equally after providing for interest @ 10% per annum on original capital, and salaries of Rs. 24,000 and Rs. 48,000 respectively. How much amount A would get if the period's net income (before interest and salaries) is Rs. 90,000:
A. Rs. 45,000
B. Rs. 89,000
C. Rs. 36,000
D. Zero
Select an option to see the answer and solution.
Match the following:
List-I List-II
a. Intangible assets
1. Ind AS-31
b. Impairment of assets
2. Ind AS-34
c. Interim financial reporting
3. Ind AS-36
d. Interests in joint ventures
4. Ind AS-38
A. a-1, b-2, c-3, d-4
B. a-4, b-3, c-2, d-1
C. a-4, b-1, c-2, d-3
D. a-4, b-2, c-1, d-3
Select an option to see the answer and solution.
Amongst the following statements, find the odd one out with regards to book keeping.
A. Book keeping has limited scope and concerned with recording, classifying & summarizing
B. Book keeping is essentially a clerical work
C. Book keeping depends on Accounting for making accounting records more useful
D. Book keeping only considers monetary transactions
E. Book keeping happens after the Accounting process
Select an option to see the answer and solution.
Balance Sheet depicts:
A. Only the assets position
B. Only the liability position
C. Cash position
D. Financial position
Select an option to see the answer and solution.
