Which type of asset class includes those assets which have only definite use and become valueless when the yield is over?
A. Fixed asset
B. Current asset
C. Fictitious asset
D. Wasting asset
Select an option to see the answer and solution.
Cash Purchases:
A. Increases assets
B. Results in no change in the total assets
C. Decreases assets
D. Increases liability
Select an option to see the answer and solution.
Payment of salary is recorded by:
A. Debiting salary a/c; crediting cash a/c
B. Debiting cash a/c; crediting salary a/c
C. Debiting employee a/c; crediting cash a/c
D. Debiting employee a/c; crediting salary a/c
Select an option to see the answer and solution.
Payment received from Debtor:
A. Decreases the Total Assets
B. Increases the Total Assets
C. Results in no change in the Total Assets
D. Increases the Total Liabilities
Select an option to see the answer and solution.
Accountant should follow the same principles of accounting continuously is as per which accounting convention:
A. Convention of conservatism
B. Convention of full disclosure
C. Convention of consistency
D. None of these
Select an option to see the answer and solution.
Cost accounting is applied to:
A. Public undertakings only
B. Large business enterprise only
C. Small business concerns only
D. Manufacturing and service concern
Select an option to see the answer and solution.
Franking machine is used for-
A. Folding letters
B. To sew the envelope
C. In sealing the envelops
D. Printing of stamp on envelops
Select an option to see the answer and solution.
Which of the following is a real (permanent) account?
A. Goodwill
B. Sales
C. Accounts Receivable
D. Both Goodwill and Accounts Receivable
Select an option to see the answer and solution.
Which of the following functions is managerial accounting intended to facilitate?
A. Planning
B. Decision making
C. Control
D. All of these
Select an option to see the answer and solution.
The revenue recognition principal dictates that all types of incomes should be recorded or recognized when:
A. Cash is received
B. At the end of accounting period
C. When they are earned
D. When interest is paid
Select an option to see the answer and solution.
Choose incorrect statement from the following:
A. 28 Days T-bills were introduced in 1998
B. 364 Days T-bills were introduced in 1992
C. 182 Days T-bills were introduced in 1986
D. 273 Days T-bills were introduced in 2006
Select an option to see the answer and solution.
Under which of the following approaches, the cost of equity is assumed to increase linearly with leverage, i.e., the average cost of capital remains constant with increased use of leverage?
A. Net Operating Income Approach
B. Net Income Approach
C. Traditional Approach
D. Walter Approach
Select an option to see the answer and solution.
The main function of a business office is
A. Preserving letters for future
B. Calculating salary etc of the employees
C. To keep records and letters safe for future
D. None of the above
Select an option to see the answer and solution.
Risk of a portfolio can be minimised by which one of the following?
A. Combining two securities having perfect positive correlation in their expected returns
B. Combining two securities having perfect negative correlation in their expected returns
C. Combining two securities having partially positive correlation in their expected returns
D. Combining two securities having partially negative correlation in their expected returns
Select an option to see the answer and solution.
Which one of the following speculative classes causes a fall in the prices of securities in the near future?
OR
Which category of speculators expects a fall in the price of securities in the near future:
A. Bull
B. Bear
C. Strag (broker)
D. None of these
Select an option to see the answer and solution.
Which of the following statements is correct in regards to exchange rate risk of a firm importing goods?
(1) If home currency weakens, the firm incurs a loss.
(2) If home currency strengthens, the firm incurs a loss.
Select the correct answer from the options given below:
A. (1) Only
B. (2) Only
C. Both (1) and (2)
D. Neither (1) nor (2)
Select an option to see the answer and solution.
New issue of shares is made in
A. primary market
B. secondary market
C. organised market
D. all of the above
Select an option to see the answer and solution.
Vertical Combination:
A. Eliminates competition
B. Reduces expenditure
C. Has no affect on competition
D. None of the above
Select an option to see the answer and solution.
The going concern concept assumes that:
A. The entity continue running for foreseeable future
B. The entity continue running until the end of accounting period
C. The entity will close its operating in 10 years
D. The entity can't be liquidated
Select an option to see the answer and solution.
Which of the following are the forms of e-banking? Select the correct answer.
(1) Internet Banking
(2) Telephone Banking
(3) Electronic Cheque Conversion
(4) Electronic Bill Payment
(5) Direct Fund Transfer Through RTGS
A. (1), (3) and (4)
B. (1), (2), (3) and (4)
C. (2), (3) and (4)
D. (1), (2), (3), (4) and (5)
Select an option to see the answer and solution.