Description : The summarized balance sheet of Rakesh udyog Limited shows the balances of previous and current year of provision for taxation Rs. 50,000 and Rs. 65,000. If taxed paid during the current year amounted to Rs. 70,000 then amount charge ... a) Rs. 55,000 (b) Rs. 85,000 (c) Rs. 45,000 (d) Rs. 1,85,000
Last Answer : (b) Rs. 85,000
Description : Excess of current asset over current liability is known as ------------- a) Gross working capital b) Net working capital c) Average working capital d) None of these
Last Answer : a) Gross working capital
Description : Proposed dividend is a-------- a) Current liability b) Current asset c) Noncurrent liability d) Expense
Last Answer : a) Current liability
Description : Stock and prepaid expanses are not included in ---------------- a) Current asset b) Fixed asset c) Current liability d) Quick asset
Last Answer : d) Quick asset
Description : The asset, the amount of which can be realized within a period of one year are known as ---------------- a) Current liability b) Current asset c) Liquid liability d) Fixed asset
Last Answer : b) Current asset
Description : he ratio of current asset to currnt liability is known as -------------- a) Liquid ratio b) Current ratio c) Absolute liquid ratio d) Turn over ratio
Last Answer : b) Current ratio
Description : Cash from operations is equal to------------------ a) net profit afer tax b) net profit plus increase in current asset c) net profit plus decrease in current liabilities d) net profit plus non-cash expenses plus decrease in current
Last Answer : d) net profit plus non-cash expenses plus decrease in current
Description : Any gain on sale of non-current asset should be ----- from the net profit for determining funds from operation a) Deducted b) Added c) Increased d) None of these
Last Answer : a) Deducted
Description : ---------account is prepared to know funds from operation a) Profit & Loss appropriation account b) Profit and loss account c) Trading account d) Profit & Loss adjustment account
Last Answer : d) Profit & Loss adjustment account
Description : The closing entry process consists of closing a. all asset and liability accounts. b. out the retained earnings account. c. all permanent accounts. d. all temporary accounts.
Last Answer : d. all temporary accounts.
Description : ___________ value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm‟s length transaction.
Last Answer : Fair,
Description : Exchange rate is the rate at which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.
Last Answer : FALSE
Description : Provision for Income Tax is _____ A. Debited to P & L Appropriation A/c B. Debited to Profit and Loss A/c C. Debited to Treading A/c D. Credited to P & L Appropriation a/c
Last Answer : B. Debited to Profit and Loss A/c
Description : An example of Balance Sheet ratio is --------------- a) Net profit ratio b) Inventory turn over ratio c) Current ratio d) Fixed asset turn over ratio
Last Answer : c) Current ratio
Description : A centre at which proper utilization of asset used in the centre a) Investment centre b) Profit centre c) Cost centre d) Responsibility centre
Last Answer : a) Investment centre
Description : Which of the following is a non-current liability a) Mortgage loan b) Bank balance c) Outstanding salary d) None of these
Last Answer : a) Mortgage loan
Description : A balance sheet for a chemical plant shows its financial condition at any given date. It does not contain the __________ of the plant. (A) Current asset (B) Current liability (C) Long term debt (D) Profit
Last Answer : D) Profit
Description : Which of the following is non-current asset a) Goodwill b) Debtors c) Stock d) Prepaid rent
Last Answer : a) Goodwill
Description : At the balance sheet date, the balance on the Accumulated Provision for Depreciation Account is A) Transferred to Depreciation Account B) Transferred to the Asset Account C) Transferred to Profit and Loss Account D) Simply deducted from the asset in the Balance Sheet
Last Answer : Answer: D
Description : The contingent liability denominated in foreign currency at the balance sheet date is disclosed by using the __________ (a) Average Rate (b) Closing Rate (c) Non-monetary Rate (d) Monetary Rate
Last Answer : Closing
Description : Government grants related to income as per the Accounting Standard (AS)-12 should be- (A) Presented as a credit in the statement of Profit and Loss (B) Presented as a deferred income on the asset ... of balance sheet (D) Presented both in the Profit and Loss statement and in the balance sheet
Last Answer : Answer: Presented both in the Profit and Loss statement and in the balance sheet
Description : If the current assets and working capital of a company are rs.80,000 and rs.50000 then current liability will be------------- a) Rs.1,00,000 b) Rs.1,30,000 c) Rs.70000 d) Rs.30000
Last Answer : d) Rs.30000
Description : Income tax payable come under ------------------ a) Long term liability b) Long term fund c) Current liability d) Other liabilities
Last Answer : c) Current liability
Description : On a classified balance sheet, merchandise inventory is classified as a. an intangible asset. b. property, plant, and equipment. c. a current asset. d. a long-term investment.
Last Answer : c. a current asset.
Description : A current asset is a. the last asset purchased by a business. b. an asset which is currently being used to produce a product or service. c. usually found as a separate classification in the income statement. d. an asset that a company expects to convert to cash or use up within one year.
Last Answer : d. an asset that a company expects to convert to cash or use up within one year.
Description : Office Equipment is classified in the balance sheet as a. a current asset. b. property, plant, and equipment. c. an intangible asset. d. a long-term investment.
Last Answer : b. property, plant, and equipment.
Description : A firm’s investment in current asset is known as ---------------- a) Net working capital b) Gross working capital c) Average working capital d) None of these
Last Answer : b) Gross working capital
Description : Current liabilities are equals to------------------------------- a) Working capital +current assets b) Working capital-current assets c) Current assets-working capital d) Current asset + working capital
Last Answer : c) Current assets-working capital
Description : Working capital is expressed as------ a) Current asset-fixed asset b) Fixed assets-current liabilities c) Current assets-current liabilities d) None of these
Last Answer : c) Current assets-current liabilities
Description : Proprietary ratio measures the relationship between share holder fund and ------------------ a) Total asset b) Fixed asset c) Current asset d) Fictious asset
Last Answer : a) Total asset
Description : The ratio of liquid asset to current liabilities a) Quick ratio b) Current ratio c) Absolute liquid ratio d) Combined ratio
Last Answer : a) Quick ratio
Description : Provision for tax is shown as a part of-----------activity a) financing b) investing c) operating d) others
Last Answer : c) operating
Description : LLP is governed by a) Partnership Act , 1932 b) Companies Act , 1956 c) Limited Liability Partnership Act , 2008 d) Companies Act , 2013
Last Answer : c) Limited Liability Partnership Act , 2008
Description : At least of the designated partners of every limited liability partnership shall be a resident in India. a) One b) Two c) Three d) Seven
Last Answer : c) Three
Description : Every partner of a limited liability partnership must have a minimum of Contribution of Rs. 1 Lakh.
Description : Every Limited Liability Partnership must have at least two partners but there is no maximum limit on the numbers of partners.
Last Answer : TRUE
Description : The liability of each partner is limited to his agreed contribution in the Limited Liability Partnership.
Description : A LLP is a new form of legal business entity with unlimited liability.
Description : Every partner of a limited liability partnership must have a minimum of Contribution of Rs. 1 Lakh
Description : Liability for compensation under Workmen’s Compensation Act is treated a) Secured creditor b) Preferential creditor c) Over – riding preferential creditor d) Unsecured creditor
Last Answer : Over – riding preferential creditor
Description : A past member is not liable to make a contribution if liability was contracted after he ceased to be a member.
Description : The contingent liability denominated in foreign currency at the balance sheet date is disclosed by using the ____________ rate.
Description : When the purchasing company does not take over a particular liability and the vendor company pays that liability, it will debit it to______ (A) Realisation Account (B) Bank Account (D) Liability Account (D) Creditors Account
Last Answer : (A) Realisation Account
Description : Net worth refers to owner’s-------------------------- a) Equity b) Solvency c) Liability d) None of these
Last Answer : a) Equity
Description : Accounting question: is it a fixed asset if multiple items total over $500?
Last Answer : The price is irrelevant to the definition of a fixed asset. The common definition is applicable to items not readily convertible to cash, such as your house or the new furnace in your house—things you are unlikely to buy or sell in a hock shop or yard sale.
Description : If a customer agrees to retain merchandise that is defective because the seller is willing to reduce the selling price, this transaction is known as a sales a. discount. b. return. c. contra asset. d. allowance.
Last Answer : b. return.
Description : The Sales Returns and Allowances account is classified as a(n) a. asset account. b. contra asset account. c. expense account.
Last Answer : b. contra asset account.
Description : An intangible asset a. does not have physical substance, yet often is very valuable. b. is worthless because it has no physical substance. c. is converted into a tangible asset during the operating cycle. d. cannot be classified on the balance sheet because it lacks physical substance.
Last Answer : a. does not have physical substance, yet often is very valuable.