Description : When the purchasing company bears the liquidation expenses, it will debit the expenses to (A)Vendor Company‘s Account (B) Bank Account (C)Goodwill Account (D)None of the above
Last Answer : (C)Goodwill Account
Description : If one of the cars purchased by a car dealer is used for business purpose, instead of resale, then it should be recorded by_____ a) Dr Drawing A/c & Cr Purchases A/c b) Dr Office Expenses A/c & Cr Motor Car A/c c) Dr Motor Car A/c & Cr Purchases A/c d) Dr Motor Car & Cr Sales A/c
Last Answer : c) Dr Motor Car A/c & Cr Purchases A/c
Description : The rule debit all expenses and losses and credit all income and gains relates to A] Personal account B] Real account C] Nominal accounts D] All
Last Answer : C] Nominal accounts
Description : When the Vendor (seller) company agrees to bear liquidation expenses, it will debit (A) Realisation Account (B) Bank Account (C) Goodwill Account (D)None of the above
Last Answer : (A) Realisation Account
Description : When liquidation expenses is paid and borne by seller company then it is debited to _______ (A) Bank A/c (B) Goodwill A/c (C) Realisation A/c (D) Capital Reserve A/c.
Last Answer : (C) Realisation A/c
Description : Cost of inventories includes A. Direct Material + Direct Expenses B. Direct Labour + Direct Expenses C. All costs of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition D. Direct material only
Last Answer : C. All costs of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition
Description : 1 Balance in hand ₹ 125. Postage ₹ 28. Stationery ₹ 35. 2 Refreshment expenses ₹ 20.
Last Answer : Mr. Shrinath maintains a columnar petty cash book on the Imprest system. The Imprest amount is ₹ 850. The ... for Postage ₹ 7. Repair charges ₹ 75.
Description : Mr. X is a dealer in electronic goods (refrigerator, washing machine, air conditioners, televisions, etc.) He purchased two air conditioners and installed in his showroom. In the books of X the ... will be debited to A] Drawing account B] Capital Account C] Fixedassets D] Purchases account
Last Answer : C] Fixedassets
Description : Value of goods withdrawn by the proprietor for his personal use should be credited to ____ a) Capital A/c b) Sales A/c c) Drawings A/c d) Purchases A/c
Last Answer : d) Purchases A/c
Description : Which of the following is not a Real Account? a) Cash A/c b) Investments A/c c) Out standing rent A/c d) Purchases A/c
Last Answer : c) Out standing rent A/c
Description : A trader purchases goods for Rs. 2500000, of these 70% of goods were sold during the year. At the end of 31st December 2009, the market value of such goods were Rs. 500000. But the trader recorded in ... is violated. (a) Money measurement (b) Conservatism (c) Consistency (d) None of these
Last Answer : (b) Conservatism
Description : X Ltd. goes into liquidation and an existing company Z Ltd. purchases the business of X Ltd. It is a case of: A. Absorption B. External reconstruction C. Amalgamation. D. Liquidation
Last Answer : A. Absorption
Description : Goods withdrawn by the proprietor for his personal use are A. Shown as a deduction from the purchases B. Shown as a deduction from the sales C. Treated as sales at cost price D. Added to the purchases
Last Answer : A. Shown as a deduction from the purchases
Description : When company purchases the business of another company ........ comes into existence. (A)Amalgamation (B)Absorption (C)External Reconstruction (D)Internal Reconstruction
Last Answer : (B)Absorption
Description : For every debit there will be an equal creditaccording to A] Matching concept B] cost concept C] Money measurement concept D] Dual aspect concept
Last Answer : D] Dual aspect concept
Description : The principle ―Debit the receiver and credit the giver‖ is related to_____ a) Personal a/c b) Real a/c c) Nominal a/c d) None
Last Answer : a) Personal a/c
Description : Debit the receiver & credit the giver is _____ account a) Personal b) Real c) Nominal d) All the above
Last Answer : a) Personal
Description : Goodwill mean A. Good Will B. Credit C. Debit D. Good Wishes
Last Answer : B. Credit
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 (C) Liability Account (D)None of the above
Description : Premium received on issue of shares is shown on-----------. A. asset side of the balance sheet B. liability side of the balance sheet C. credit side of the P&L a/c. D. debit side of the P & L a/c
Last Answer : B. liability side of the balance sheet
Description : Financial accounting is concerned with – a) Recording of business expenses and revenue b) Recording of costs of products and services c) Recording of day to day business transactions d) None of the above
Last Answer : c) Recording of day to day business transactions
Description : Matching concept means A] Assets = capital + liabilities B] Transactions recorded at accrual concept C] Anticipate no profit but recognize all losses D] Expenses should be matched with the revenue of the period.
Last Answer : D] Expenses should be matched with the revenue of the period.
Description : As per the Matching concept, Revenue –? = Profit a) Expenses b) Liabilities c) Losses d) Assets
Last Answer : a) Expenses
Description : Which of the following is incorrect? a) Good will intangible asset b) Sundry debtors -current asset c) Loose tools tangible fixed asset d) Outstanding expenses -current asset.
Last Answer : d) Outstanding expenses -current asset.
Description : The vendor company transfers preliminary expenses (at the time of absorption) to: A. Purchasing Company account B. Realisation account C. Purchasing company's account. D. Equity shareholders' account
Last Answer : D. Equity shareholders' account
Description : When the expenses of liquidation are to be borne by the vendor company, then the vendor company debits: A. Realisation account B. Bank account C. Goodwill account. D. Purchasing company account
Last Answer : A. Realisation account
Description : When the expenses of liquidation are to be borne by the purchasing company, then the purchasing company debits: A. Vendor company's account B. Bank account C. Goodwill account. D. Realisation A/c
Last Answer : C. Goodwill account.
Description : Which of the following cannot be treated as revenue expenditure? A. Cost of goods purchased for resale. B. Wages paid for the erection of plant and machinery. C. Obsolescence cost. D. Expenses incurred by way of repairs of existing assets which do not in any way add to their earning capacity.
Last Answer : B. Wages paid for the erection of plant and machinery.
Description : Which of the following is not deferred revenue expenditure? A. Heavy advertisement expenditure. B. Expenses incurred in removing the business to more convenient premises. C. Preliminary expenses. D. Depreciation on fixed assets.
Last Answer : D. Depreciation on fixed assets.
Description : The first item in order of payment to be made by liquidator is A. Liquidation expenses B. Secured creditor C. Preferential creditor D. Preference shareholder
Last Answer : A. Liquidation expenses
Description : Following is the application of fund A. Decrease in balance of Fixed Asset B. Decrease in working capital C. Decrease in net profit D. Decrease in preliminary expenses
Last Answer : C. Decrease in net profit
Description : Which of following is not Current Asset? A. Patent B. Bills receivable C. Cashable security D. Prepaid Expenses
Last Answer : A. Patent
Description : All direct & indirect expenses related to business are charged: a)Profit and loss account b)Trading account c)Trading account Profit and Loss account d)Directly to Balance sheet
Last Answer : c)Trading account Profit and Loss account
Description : Premium received on issue of shares cannot be utilised for ---------. A. for the issue of bonus shares B. for writing of preliminary expenses C. for providing premium payable on redemption D. for distribution of dividend
Last Answer : D. for distribution of dividend
Description : Hitanshi Ltd.‘s purchase consideration is Rs.12,345 and Net Assets Rs.3,568, then........... (A) Goodwill Rs. 8,777 (B) Capital Reserve Rs. 8,777 (C)Goodwill Rs. 15,913 (D) Capital Reserve R
Last Answer : (A) Goodwill Rs. 8,777
Description : If we take goods for own use we should A) Debit Drawings Account, Credit Purchases Account B) Debit Drawings Account: Credit Stock Account C) Debit Sales Account: Credit Stock Account D) Debit Purchases Account: Credit Drawings Account
Last Answer : Answer: A
Description : If Opening Stock – Rs.15,000 Purchases – Rs.37,500 Direct Expenses – Rs.1,500 Closing Stock – Rs.7,500 Operating Expenses – Rs.3,000 Sales are Rs. 60,000 during the year, what is the net profit ? (A) Rs. 12,000 (B) Rs. 10,500 (C) Rs. 7,500 (D) Rs. 3,000
Last Answer : Answer: Rs. 10,500
Description : Gross profit is A) Cost of goods sold + Opening stock B) Excess of sales over cost of goods sold C) Sales fewer Purchases D) Net profit fewer expenses of the period
Last Answer : Answer: B
Description : Under purchase method the difference between the purchase consideration and share capital of the transferee company should be adjusted to: A. General reserve B. Amalgamation adjustment account C. Goodwill or capital reserve D. None of the above
Last Answer : C. Goodwill or capital reserve
Description : Under pooling of interest method the difference between the purchase consideration and share capital of the transferee company should be adjusted to: A. General reserve B. Amalgamation adjustment account C. Goodwill or capital reserve D. None of the above
Last Answer : A. General reserve
Description : If amalgamation is in the ..............., the General Reserve or Profit and Loss A/c balance will not be shown in the balance sheet. (A)Form of Merger (B)Form of purchase (C)Net assets method (D)Consideration method
Last Answer : (B)Form of purchase
Description : ncome Summary has a credit balance of $12,000 in J. Sawyer Co. after closing revenues and expenses. The entry to close Income Summary is a. credit Income Summary $12,000, debit Retained Earnings ... 000, credit Dividends $12,000. d. debit Income Summary $12,000, credit Retained Earnings $12,000.
Last Answer : d. debit Income Summary $12,000, credit Retained Earnings $12,000.
Description : If Income Summary has a credit balance after revenues and expenses have been closed into it, the closing entry for Income Summary will include a a. debit to the retained earnings account. b. debit ... . c. credit to the retained earnings account. d. credit to the owner's dividends account.
Last Answer : c. credit to the retained earnings account.
Description : Capital A/c is a _______ A/c. a) Personal b) Real c) Nominal d) None
Description : Dividend is paid on _______ A. On Issued Share Capital B. On Subscribed Share Capital C. On Called up Share Capital D. On Paid up Share Capital
Last Answer : D. On Paid up Share Capital
Description : Corporate dividend tax is _______ A. Computed on Net profit B. Computed on Share Capital C. Computed on Goss Profit D. Computed on Dividend paid
Last Answer : D. Computed on Dividend paid
Description : Sales made to Mahesh for cash should be debited to________________ a) Cash account b) Mahesh Account c) Sales account d) Purchase account
Last Answer : a) Cash account
Description : The share capital, to the extent already held by the purchasing company, is closed by the vendor company by crediting it to: A. Share capital account B. Purchasing company's account C. Realisation account. D. Business purchase account
Last Answer : C. Realisation account.
Description : When the purchasing company makes payment of the purchase consideration, it debits: A. Business purchase account B. Assets account C. Vendor company's account. D. Realisation A/c
Last Answer : C. Vendor company's account.
Description : Amalgamation is said to be in the nature of merger if: A. All assets and liabilities of transferor company are taken over by the transferee company. B. Business of transferor company is intended to ... paid in equity shares by the transferee company except for fraction shares. D. All of the above
Last Answer : D. All of the above