Description : If the goodwill raised at the time of retirement of a partner is to be written-off, then the capital accounts of the remaining partners are debited in– (A) New profit sharing ratio (B) Capital ratio (C) Old profit sharing ratio (D) Sacrificing ratio
Last Answer : Answer: Old profit sharing ratio
Description : The goods taken by the proprietor from the shop is debited to– (A) Shop account (B) Goods account (C) Capital account (D) Drawings accounts
Last Answer : Answer: Drawings accounts
Description : In preparing closing entries a. each revenue account will be credited. b. each expense account will be credited. c. the retained earnings account will be debited if there is net income for the period. d. the dividends account will be debited.
Last Answer : b. each expense account will be credited.
Description : In order to close the dividends account, the a. income summary account should be debited. b. income summary account should be credited. c. retained earnings account should be credited. d. retained earnings account should be debited.
Last Answer : d. retained earnings account should be debited.
Description : In process costing, if an abnormal loss arises, the process account is generally (a) Debited with the scrap value of the abnormal loss units (b) Debited with the full production cost of the abnormal loss units (c) Credited with the scrap value of the abnormal loss units
Last Answer : (d) Credited with the full production cost of the abnormal loss units
Description : If wages are paid for construction of business premises ______ A/c is credited and _____ A/c is debited. a) Wages, Cash b) Premises, Cash c) Cash, Wages d) Cash, Premises
Last Answer : d) Cash, Premises
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 : Under a perpetual inventory system, acquisition of merchandise is debited to the a. Merchandise Inventory account. b. Cost of Goods Sold account. c. Purchases account. d. Accounts Payable account.
Last Answer : a. Merchandise Inventory account.
Description : XYZ Ltd. issued 10,000 shares of Rs. 100 each at Rs. 120 per share with Rs. 25 on application, Rs. 45 on allotment including premium, Rs. 20 on first call and Rs. 30 on final call. Govind who held 200 shares did not pay ... forfeiture ? (A) Rs. 14,000 (B) Rs. 10,000 (C) Rs. 9,000 (D) Rs. 4,000
Last Answer : Answer: Rs. 10,000
Description : When shares issued at premium which of the following account is credited? A. Share premium account B. Share first call account C. Share allotment account D. Share forfeited account
Last Answer : A. Share premium 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 : 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.
Description : Permanent working capital A. varies with seasonal needs B. includes fixed assets C. is the amount of current assets required to meet a firm's long-term minimum needs D. includes accounts
Last Answer : C. is the amount of current assets required to meet a firm's long-term minimum needs
Description : The amount deposited in Securities Premium Account can be used for– (A) Distributing profits (B) Issue of Bonus Shares (C) Paying the amount to director (D) None of the above
Last Answer : Answer: Issue of Bonus Shares
Description : Which of the following securities proves a burden on finances of the company, when company is not earning profits? A. Equity shares. B. Preference shares. C. Redeemable preference shares. D. Debentures.
Last Answer : D. Debentures.
Description : LLP must Maintain books of accounts on accrual basis.
Last Answer : FALSE
Description : When a seller grants credit for returned goods, the account that is credited is a. Sales. b. Sales Returns and Allowances. c. Merchandise Inventory. d. Accounts Receivable.
Last Answer : d. Accounts Receivable.
Description : When goods are returned that relate to a prior cash sale, a. the Sales Returns and Allowances account should not be used. b. the cash account will be credited. c. Sales Returns and Allowances will be credited. d. Accounts Receivable will be credited.
Last Answer : b. the cash account will be credited.
Description : Capacity utilization - (1) is usually near 100 percent. (2) represents the percent of the labour force that is employed. (3) is a measure of the proportional of the existing capital ... into a recession, since firms must replace unemployed workers with some other resources to maintain production.
Last Answer : (3) is a measure of the proportional of the existing capital stock used for current production. Explanation: Capacity utilisation refers to the extent or level to which the productive capacity of a ... as a percentage, it is computed by dividing the total capacity with the portion being utilized.
Description : Capacity utilisation (1) is usually near 100 percent. (2) represents the percent of the labour force that is employed. (3) is a measure of the proportional of the existing capital ... into a recession, since firms must replace unemployed workers with some other resources to maintain production.
Last Answer : is a measure of the proportional of the existing capital stock used for current production.
Description : Which of the following statements is correct for a conservative financing policy for a firm relative to a former aggressive policy? A. The firm uses long-term financing to finance all fixed and current ... its risk profile. D. The firm will increase its dividends per share (DPS) this period.
Last Answer : B. The firm will see an increase in its expected profits.
Description : In pursuing a CPA firm's quality control objectives, a CPA firm may maintain records indicating which partners or employees of the CPA firm were previously employed by the CPA firm's clients. Which ... to satisfy? a. Monitoring. b. Human resources. c. Ethical requirements. d. Engagement performance
Last Answer : Ethical requirements.
Description : When the Net Assets are less than the Purchase Consideration, the difference will be (A) Debited to Goodwill A/c (B) Debited to General Reserve (C) None of these (D) Debited to Capital Reserve
Last Answer : While calculating purchase consideration ............... values of assets is to be considered. (A) Book value (B) Revalued price (C) Average price (D) Capital
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 : Which of the following statements is not correct? A. For the purpose of Funds Flow Statement, the term 'fund ' generally refers to net working capital B. Funds flow is a wider concept than ... business D. The capitalisation of reserves by the issue of bonus shares also involves flow of funds
Last Answer : D. The capitalisation of reserves by the issue of bonus shares also involves flow of funds
Description : Shyam and Ram are active partners in a business. Shyam contributes 2/7th received capital of the profit for 21 month and Ram received 1/5th of the profit. Then how many long Ram invest the money in the business. a) 8months. b) 7months. c) 3months d) 1.5 months
Last Answer : Answer: D) Let total profit =P Ram’s profit =1/5 P Shyam profit =4/5 p Ratio of Shyam & Ram =4/5 p: 1/5 =4:1 Total amount put be X Shyam put =2/7*p for 21 months. Ram put =5/7 * p Ratio of Shyam & Ram =4:1=2/7 *p*21:5/7*p*T T= 1.5months = Ram amount investments time.
Description : Three active partners A, B, C start a work. Twice of A's capital is equal to 6 times of B's capital is nine times C's capital. If B's profit is Rs. 7500. Then find the total profit. a) 30750 b) 30833 c) 45250 d) 32745
Last Answer : Answer: B) The capital of C be y. The capital of B be 9y. The capital of A be 54y/2 = 27y Ratio of A:B:C =27y:9y:y Total =7500/9*37=Rs 30833.
Description : Ravi and kavi are partners in a business. Ravi contributes 3/7th of the total capital for 20 months and kavi received 3/4 th of the profit. Then how long kavi invest the money in the business? A) 5 B) 11 C) 6 D) 9
Last Answer : Answer: A) Total profit be X kavi’s profit is 3/4x Ravi’s profit is 1/4x Ratio of ravi & kavi profit =3/4 x: 1/4x=3:1 Let Ravi's investment =3/7 *P(for 20 months then, kavi’s investment =4/7 P) Ratio of ravi & kavi Profit =3:1=3/7*P*20 :4/7*p*T T=5 months= kavi investment time
Description : 3 partners A , B, C starts a business. 4 times of A's capital is equal to 6 times of B's Capital and B's Capital is 8 times of C's capital if profit of B is Rs.6300. Then find the average profit A and C A) 7000.50 B) 5118.75 C) 4475.25 D) none
Last Answer : Answer: B) Let the capital of C be y Let the capital of B be 8y Let the capital of A be 48y/4=12y Ratio of their profit is , A:B:C = 12y : 8y :y =12:8:1 Total of A&C =6300/8 *13 =Rs .10237.5 Average profit of A&C =10237.5/2 =Rs.5118.75
Description : Dividend can be paid generally out of– (A) share premium account (B) capital redemption reserve account (C) current year’s profits (D) All of these
Last Answer : Answer: current year’s profits
Description : What is working capital? a. The funds needed for the day to day running of the company b. The cash on hand at the end of the day c. Profits less current liabilities d. The amount of funds a company needs to run indefinitely e. Total sales less total expenses
Last Answer : a. The funds needed for the day to day running of the company
Description : Capital used for financing activities can be acquired through_______________. a. Current debt b. Stock issues c. Bond issues d. Profits e. All the above
Last Answer : e. All the above
Description : Which one is not the source of acquiring capital? a. Profits b. T-Bills c. Current Debt d. Stock e. Bond
Last Answer : b. T-Bills
Description : Capital needed for company activities cannot be acquired through: a. stocks and bonds. b. profits. c. current debt. d. arbitrarily firing employees. e. all of the above.
Last Answer : d. arbitrarily firing employees.
Description : The Finance Department can use which of the following methods to acquire capital for company activities? a. Current Debt, Stock Issues, Bond Issues, and Profits b. Profits, Current Debt, Withholding ... Stock Issues, and Profits e. Current Debt, Stock Issues, Bond Issues, and cooking the books
Last Answer : a. Current Debt, Stock Issues, Bond Issues, and Profits
Description : If the balance on current and capital accounts of Balance of Payments (BoP) taken together is negative, then (a) It is a case of BoP surplus ; (b) It is a case of BoP surplus where the official reserve account is in surplus; (c) It is a case of BoP deficit ; (d) It is case of BoP disequilibrium
Last Answer : (c) It is a case of BoP deficit ;
Description : Which of the following is a function of SEBI? A. to approve by−laws of stock exchanges. B. inspect the books of accounts of financial intermediaries. C. to require the stock exchange to amend their ... compel certain companies to list their shares in one or more stock exchanges. E. All of the Above
Last Answer : E. All of the Above Explanation: Function of SEBI: To approve by−laws of stock exchanges. Inspect the books of accounts of financial intermediaries. To require the stock exchange to amend their by−laws. Compel certain companies to list their shares in one or more stock exchanges.
Description : Working capital will increase A. If Current Asset Decrease B. If Current Liability Decrease C. If Current LiabilityIncrease D. If new shares are issued
Last Answer : B. If Current Liability Decrease
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 : How can a firm provide a margin of safety if it cannot borrow on short notice to meet its needs? A. Maintain a low level of current assets (especially cash and marketable securities) ... the level of fixed assets (especially plant and equipment D. Lengthening the maturity schedule of financing
Last Answer : D. Lengthening the maturity schedule of financing
Description : The difference between accounting profits and economic profits is: A. Implicit Cost B. explicit costs C. Fixed Costs D. Variable Costs
Last Answer : ANSWER: A
Description : A firm should cease production in the short run if(a) Price is less than average fixed cost (b) Price is less than average cost (c) Profits are negative (d) Price is less than average variable cost
Last Answer : (d) Price is less than average variable cost
Description : The authorized capital of a company is Rs.50,000 and the number of shares is 1000. If the paid-up capital is Rs.25,000, then the paid-up value of each
Last Answer : The authorized capital of a company is Rs.50,000 and the number of shares is 1000. If the paid-up ... the paid-up value of each share is Rs.______.
Description : The paid-up capital of a company is Rs.50,000. If the company has shares of face of Rs.25 in which Rs.20 is paid-up, then how many shares does it have
Last Answer : The paid-up capital of a company is Rs.50,000. If the company has shares of face of Rs.25 ... have ? What is the authorized capital of the company?
Description : A company has shares of face value Rs.50 in which Rs.25 is paid-up and the paid-up capital is Rs.10,000. Then, the authorized capital is _________.
Last Answer : A company has shares of face value Rs.50 in which Rs.25 is paid-up and the paid-up capital is Rs.10,000. Then, the authorized capital is _________.
Description : To maintain the required balance of phase relationships and critical feeding, how must the end-fire array be constructed?
Last Answer : Symmetrically.
Description : A correcting entry a. must involve one balance sheet account and one income statement account. b. is another name for a closing entry. c. may involve any combination of accounts. d. is a required step in the accounting cycle.
Last Answer : c. may involve any combination of accounts.
Description : Mark the correct option a) Not more than one indent for the same office should be submitted in a month b) Superintendents prepare indents for the articles required for themselves and for their inspectors. c ... the number and date of the authority for the recovery of the same e) All the above
Last Answer : e) All the above
Description : Anju and Bimal are partners in a business. Anju contributes 1 / 4 of the capital for 15 months and Bimal received 2 / 3 of the profit, for how long Bimal’s money was used ? A.5 months B.3months C.8 months D.10 months
Last Answer : Answer- D (10 months) Explanation- Let total profit is x Then Bimal's share in profit= (2/3)x so anju's share in profit= x- (2/3)x =x/3 so,we get ratios of profit of Anju :Bimal :: 1:2 Let total ... /4)P x b = 1/2 [ Capital x time =profit] so,we get b=10 Bimal's money was used for 10 months