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
Last Answer : (A) Debited to Goodwill A/c
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 : When purchasing company pays purchase consideration, it will be debited to (A)Business purchase account (B)Assets account (C) Liquidator of selling company’s account (D)None of the above
Last Answer : (C) Liquidator of selling company’s account
Description : If the purchase hook is undermasted, the purchase account is debited in rectification.
Last Answer : State whether the following statement are True or False with reason : If the purchase hook ... , the purchase account is debited in rectification.
Description : What is the name of the card which can be used by the buyers during he time of purchase and in which the amount will be immediately debited from the buyers account? a. E-Distributor b. Debit Card c. Credit Card d. Power Card
Last Answer : b. Debit Card
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 : (i) Software expenses paid for the installation of the computer should be debited to Software A/c.
Last Answer : Do you agree or disagree with the following statement: (i) Software expenses paid for the ... . (v) Return Inwards means purchase return.
Description : Wages paid for the installation of machinery wrongly debited to wages account is an error of ________
Last Answer : Wages paid for the installation of machinery wrongly debited to wages account is an error of ________ ... principle (c) commission (d) duplication
Description : The profit on sale of an asset is debited to _________ A/c.
Last Answer : The profit on sale of an asset is debited to _________ A/c. (a) Profit and Loss (b) Reserve (c) Asset (d) Balance sheet
Description : Wages paid for installation of machinery is debited to __________ account.
Last Answer : Wages paid for installation of machinery is debited to __________ account. (a) Profit and Loss (b) Trading (c) Wages (d) Machinery
Description : Bank charges debited by Bank increase bank balance as per Pass Book.
Last Answer : State whether the following statement are True or False with reason : Bank charges debited by Bank increase bank balance as per Pass Book.
Description : When cheque is ________ into bank Cash Book is debited.
Last Answer : When cheque is ________ into bank Cash Book is debited. (a) written (b) issued (c) deposited (d) dishonoured
Description : When goods are sold for cash, the personal a/c of the buyer is debited.
Last Answer : State whether the following statement are ‘True or False’ with reason : When goods are sold for cash, the personal a/c of the buyer is debited.
Description : Which account is debited, when goods are destroyed by fire?
Last Answer : Which account is debited, when goods are destroyed by fire?
Description : Carriage Inward is debited to ___________ Account.
Last Answer : Carriage Inward is debited to ___________ Account. (a) Trading A/c (b) Profit & Loss (c) Capital (d) Bank
Description : Which account will be debited when Mr. Shyam has paid cash to you?
Last Answer : Which account will be debited when Mr. Shyam has paid cash to you?
Description : Which account will be debited when goods are sold to Ram on credit?
Last Answer : Which account will be debited when goods are sold to Ram on credit?
Description : The loss on the sale of old furniture is debited to– (A) profit & loss account (B) furniture account (C) trading account (D) depreciation account
Last Answer : Answer: profit & loss account
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 : Goods worth Rs. 2,000 were distributed to employees free of charge. The account to be debited is– (A) Profit and Loss A/c (B) Advertisement A/c (C) Labour Welfare A/c (D) Goods A/c
Last Answer : Answer: Profit and Loss A/c
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 : 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 : A Sales Returns and Allowances account is not debited if a customer a. returns defective merchandise. b. receives a credit for merchandise of inferior quality. c. utilizes a prompt payment incentive.
Last Answer : c. utilizes a prompt payment incentive.
Description : Under a perpetual inventory system, acquisition of merchandise for resale is debited to the a. Merchandise Inventory account. b. Purchases account. c. Supplies account. d. Cost of Goods Sold account.
Last Answer : d. Cost of Goods Sold account.
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 : 2. The underwriting commission is payable in cash .
Last Answer : FALSE
Description : When the underwriting commission becomes payable , the underwriter A/c is debited
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 : 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 : 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 : 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 : 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 : If it is required to maintain fixed capitals then the partners’ shares of profits must be A) Credited to capital accounts B) Debited to capital accounts C) Debited to partners’ current accounts D) Credited to partners’ current accounts
Last Answer : Answer: D
Description : (i) On purchase of goods or assets output, GST A/c is credited.
Last Answer : Do you agree or disagree with the following statements : (i) On purchase of goods or assets output, GST ... Ltd should be debited to TATA Ltd's A/c.
Description : The payback period is the period A. a project takes to pay back the loan taken to purchase the capital assets B. equal to the useful life of the machines C. a project takes to recover its initial cash outflow D. over which the project will be getting operating cash inflows
Last Answer : C. a project takes to recover its initial cash outflow
Description : Under a conservative financing policy a firm would use long-term financing to finance some of the temporary current assets. What should the firm do when a "dip" in temporary current assets causes ... C. Use the excess funds to repurchase common stock. D. Purchase additional plant and equipment.
Last Answer : B. Invest the excess long-term financing in marketable securities.
Description : Which one is not the form of FDI A. Purchase of existing assets in foreign currency.B. New Investment in Property, planet and equipment. C. Making investment is the mutual funds D. Transfer of many type of asset
Last Answer : Purchase of existing assets in foreign currency.
Description : Net Assets of D.Co. for Purchase Consideration worth Rs. 4,00,000. At the time of absorption, the company has paid 32,000 equity shares each of Rs.10 each at 10% premium, then remaining cash will be - (A) Rs. 48,000 (B) Rs. 84,000 (C) Rs. 80,000 (D) Rs. 90,000
Last Answer : (A) Rs. 48,000
Description : Himanshi Ltd. purchase consideration is Rs.22,345 and Net Assets Rs.6,568, then........... (A) Goodwill Rs. 15,777 (B) Capital Reserve Rs. 15,777 (C) Goodwill Rs. 28,913 (D) Capital Reserve Rs. 28,913
Last Answer : (A) Goodwill Rs. 15,777
Description : Net Assets minus Capital Reserve is _________ (A) Goodwill (B) Total assets (C) Purchase consideration (D) None of these
Last Answer : (C) Purchase consideration
Description : The assets which is not taken under the net assets method of calculating Purchase Consideration is: (A) Loose Tools (B) Bills Receivable (C) Machinery (D) Share issued expenses
Last Answer : (D) Share issued expenses
Description : Which of the following statement is correct? (A) The amount of Goodwill or Capital Reserve is recorded in the books of purchasing company only (B) The amount of Goodwill or Capital ... value of shares of purchasing company will be taken in to account while calculating purchase consideration.
Last Answer : The amount of Goodwill or Capital Reserve is recorded in the books of purchasing company only
Description : While calculating purchase price, the following values of assets are considered (A) Book value (B) Revised Value
Last Answer : (B) Revised Value
Description : In computing purchase consideration by ‘net asset method’ all assets including fictitious assets should be considered.
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
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