Description : Which of the following statement is correct? A. Fixed assets must always be shown at market value B. Book-keeping and accounting are different terms C. Owner's Equity = Assets + Liabilities D. Patents is an example of current asset
Last Answer : A. Fixed assets must always be shown at market value
Description : Closing entries are made a. in order to terminate the business as an operating entity. b. so that all assets, liabilities, and Stockholders' equity accounts will have zero balances when the ... ) and dividends to the retained earnings account. d. so that financial statements can be prepared.
Last Answer : c. in order to transfer net income (or loss) and dividends to the retained earnings account. unt.
Description : Which of the following illustrates the use of a hedging approach to financing assets? A. Temporary current assets financed with long-term liabilities. B. Permanent working capital financed with long-term ... equity D. All assets financed with a mixture of 50% equity and 50% long-term debt
Last Answer : B. Permanent working capital financed with long-term liabilities.
Description : Gross assets are Rs.1,01,000, fictitious assets Rs.350 are included in the gross assets. External liabilities are Rs.7,500. 6% prefer share capital is Rs.45,000. Equity capital is 4,500 equity shares of Rs.10 each fully ... . The Net Asset Value Per share is A Rs.11 B Rs.10.70 C Rs.15 D Rs.20
Last Answer : Rs.10.70
Description : Value of a firm is usually based on ________. a) the value of debt and equity b) the value of assets and liabilities c) the value of debt d) the value of equity
Last Answer : d) the value of equity
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
Description : The sub-classifications on the company’s classified balance sheet would include all of the following except: a. Current Assets. b. Property, Plant, and Equipment. c. Current liabilities. d. Long-term Assets.
Last Answer : d. Long-term Assets.
Description : The relationship between current assets and current liabilities is important in evaluating a company's a. profitability. b. liquidity. c. market value. d. accounting cycle.
Last Answer : b. liquidity.
Description : Indian Accounting Standard – 28 is related to– (A) Accounting for taxes on income (B) Financial Reporting of Interests in Joint Venture (C) Impairment of Assets (D) Provisions, Contingent Liabilities and Contingent Assets
Last Answer : Answer: Impairment of Assets
Description : Which of the following statements is most correct? A. For small companies, long-term debt is the principal source of external financing. B. Current assets of the typical manufacturing firm account ... the financial manager to make a decision and not address the issue again for several months.
Last Answer : B. Current assets of the typical manufacturing firm account for over half of its total assets.
Description : To financial analysts, "working capital" means the same thing as . A. Total assets B. fixed assets C. current assets D. current assets minus current liabilities.
Last Answer : C. current assets
Description : In financial accounting of a chemical plant, which of the following relationship is invalid? (A) Assets = equities (B) Assets = liabilities + net worth (C) Total income = costs + profits (D) Assets = capital
Last Answer : (D) Assets = capital
Description : Financial Statements provide a summary of -------------------------- a) Accounts b) Assets c) Liabilities d) Expenses
Last Answer : a) Accounts
Description : Institutional agencies grant financial assistance to small scale industries for _________. A. participation in equity capital only. B. acquisition of fixed assets. C. working capital assistance. D. all of the above.
Last Answer : D. all of the above.
Description : Which of the following is an important fact about working capital in Capsim? a. The life blood of any organization b. All of the money tied up in things you one day wish to sell c. Can be ... The change of working capital can be seen on the cash flow statement e. All of the above are important
Last Answer : e. All of the above are important
Description : Which statement is true? 1) The balance of payments depends on the principle of double-entry accounting. 2) Decrease in assets and increase in liabilities of net worth represent credits or sources of funds. 3) The balance of ... period of time. A. Only 1 B. Only 2 C. Only 3 D. 1, 2 and 3
Last Answer : D. 1, 2 and 3
Description : What is total liabilities and stockholders' equity at December 31, 2008? a. $176,000 b. $190,000 c. $218,000 d. $232,000
Last Answer : c. $218,000
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 : What is the excess of assets over liabilities called?
Last Answer : Fund balance
Description : When total Assets are divided by total liabilities, called as
Last Answer : Ans. Net Capital Ratio (NCR)
Description : Unpaid calls are shown in the balance sheet of a company A. By adding it to the share capital B. By deducting it from the called-up share capital C. Under the head 'current assets' D. Under the head 'curent liabilities'
Last Answer : B. By deducting it from the called-up share capital
Description : State whether drawings increase or decrease owner’s equity.
Last Answer : State whether drawings increase or decrease owner’s equity.
Description : Net worth refers to owner’s-------------------------- a) Equity b) Solvency c) Liability d) None of these
Last Answer : a) Equity
Description : The ratio which shows the relationship between borrowed funds and owners capital is --------------- a) Proprietary ratio b) Debt equity ratio c) Capital gearing ratio d) Fixed asset ratio
Last Answer : b) Debt equity ratio
Description : ___________ is excess of assets over liabilities.
Last Answer : ___________ is excess of assets over liabilities. (a) Goodwill (b) Capital (c) Investments (d) Drawings
Description : Excess of liabilities over assets represents the solvency of a business.
Last Answer : State whether the following statement are true or false with reason : Excess of liabilities over assets represents the solvency of a business.
Description : A person whose assets are less than business liabilities is known as insolvent.
Last Answer : State whether the following statement are true or false with reason : A person whose assets are less than business liabilities is known as insolvent.
Description : A person whose assets are equal to or greater than liabilities is known as insolvent.
Last Answer : State whether the following statement are true or false with reason : A person whose assets ... or greater than liabilities is known as insolvent.
Description : State whether the following statement are true or false with reason : Capital = Liabilities – Assets.
Last Answer : State whether the following statement are true or false with reason : Capital = Liabilities – Assets.
Description : The current ratio is 3 : 2 and the amount of current liabilities is Rs. 40,000. What is the amount of current assets ? (A) Rs. 60,000 (B) Rs. 70,000 (C) Rs. 80,000 (D) Rs. 1,00,000
Last Answer : Answer: Rs. 60,000
Description : Which among the following is the societal obligation of accounting ? (A) To ascertain profit correctly (B) To maintain the records of the assets and liabilities of organisation (C) To establish effective organizational control (D) To be helpful in correct tax assessment
Last Answer : Answer: To be helpful in correct tax assessment
Description : Which of the following is the Accounting equation ? (A) Capital = Assets – Liabilities (B) Capital = Assets + Liabilities (C) Assets = Liabilities – Capital (D) Liabilities = Assets – Capital
Last Answer : Answer: Capital = Assets – Liabilities
Description : Donations received for the special purpose will be taken to the– (A) Income and Expenditure Account (B) Assets side of the Balance Sheet (C) Liabilities side of the Balance Sheet (D) Receipts and Payments Account
Last Answer : Answer: Liabilities side of the Balance Sheet
Description : In common size Balance Sheet analysis we evaluate– (A) Increase or decrease over two years is analysed (B) Only increase over two years is analysed (C) Only decrease over two years is analysed (D) All assets and liabilities are expressed in terms of percentage of total
Last Answer : Answer: All assets and liabilities are expressed in terms of percentage of total
Description : According to Balance Sheet equation concept, the capital will be– (A) Capital = Liabilities – Assets (B) Capital = Fixed Assets – Current Assests (C) Capital = Assets – Liabilities (D) Capital = Assets + Liabilities
Description : Which of the following is defined as the difference between current assets and current liabilities? A. Venture Capital B. Working Capital C. Equitable Mortgage D. None of the Above
Last Answer : B. Working Capital Explanation: The capital of a business which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities.
Description : Loan and Advances of a bank come under which of the following category? A. Assets B. Liabilities C. Deposits D. All of the Above E. None of the Above
Last Answer : A. Assets Explanation: Anything tangible or intangible that can be owned or controlled to produce value and that is held to have positive economic value is considered an asset. Anything tangible ... to produce value and that is held to have positive economic value is considered an asset.
Description : Net working capital refers to A. total assets minus fixed assets B. current assets minus current liabilities C. current assets minus inventories D. current
Last Answer : B. current assets minus current liabilities
Description : The __________ of a chemical company can be obtained directly from the balance sheet as the difference between current assets and current liabilities. (A) Cash ratio (B) Net working capital (C) Current ratio
Last Answer : (B) Net working capital
Description : The most important information needed to determine if companies can pay their current obligations is the a. net income for this year. b. projected net income for next year. c. ... between current assets and current liabilities. d. relationship between short-term and long-term liabilities.
Last Answer : c. relationship between current assets and current liabilities.
Description : ___________ items are assets and liabilities other than monetary items.
Last Answer : Non-monetary,
Description : Monetary items _________ (a) Are assets and liabilities to be received or paid in money (b) Are assets to be received in fixed or determinable amounts of money (c) Are money held and assets and ... to be received or paid in fixed or determinable amounts of money (d) None of the above
Last Answer : Are money held and assets and liabilities to be received or paid in fixed or determinable amounts of money
Description : Monetary items are defined by AS 11 as assets and liabilities other than non-monetary items.
Last Answer : FALSE
Description : Under net assets method , accumulated profits should not form part of liabilities.
Last Answer : TRUE
Description : Under the Insolvency and Bankruptcy Code, 2016, the fees of the liquidator is paid from the proceeds of sale of the ____________of the corporate debtor. a) unencumbered liabilities b) liquidation assets c) liquidation fund d) unencumbered reserves
Last Answer : b) liquidation assets
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 : An asset was purchased for Rs.1000000 with the down payment of Rs.200000 and bills accepted for Rs.800000/-What would be the effect on the total asset and total liabilities in the ... and liabilities increased by Rs.800000 D] Assets increased by Rs.800000 and liabilities increased by Rs.800000
Last Answer : D] Assets increased by Rs.800000 and liabilities increased by Rs.800000
Description : As per the Matching concept, Revenue –? = Profit a) Expenses b) Liabilities c) Losses d) Assets
Last Answer : a) Expenses
Description : Fixed assets are double the current assets and half the capital. The current assets are Rs.3,00,000 andinvestments are Rs.4,00,000. Then the current liabilities recorded in balance sheet will be a) 2,00,000 b) 1,00,000 c) 3,00,000 d) 4,00,000
Last Answer : b) 1,00,000
Description : In income measurement & recognisation of assets & liabilities which of the following concepts goes together ? (a) Periodicity, Accural, Matching (b) Cost, Accural, matching (c) Going concern, cost, Realization (d) Going concern, Periodicity, Reliability
Last Answer : (a) Periodicity, Accural, Matching