91
The definition of accounting will bring out the following functions:
A)
3, 1, 4, 2
B)
3, 1, 2, 4
C)
4, 1, 3, 2
D)
1, 4, 3, 2
Answer & Solution
Answer: Option
A
92
Which one of the following is not the object of preparing Funds Flow Statement?
A)
To show the results of current financial management
B)
To show how general expansion on business has been financed
C)
To show the earnings of the business over a period of time
D)
To illustrate the relationship between profits from operations on the one hand and raising of new capital or contracting term loan on the other
Answer & Solution
Answer: Option
D
93
In the absence of specific direction cash paid by a new partner to purchase his share of goodwill, will be apportioned by the old partners in
A)
their old profit sharing ratio
B)
their sacrificing ratio
C)
their capital ratio
D)
none of the above
Answer & Solution
Answer: Option
B
94
Generally accepted basis of Valuation of a fixed asset is:
A)
Replacement cost
B)
Net realisable value
C)
Historical cost less depreciation
D)
Cost or market value whichever is lower
Answer & Solution
Answer: Option
C
95
Increasing trend in general pricelevelis known as
A)
depreciation
B)
inflation
C)
profit
D)
pricing
Answer & Solution
Answer: Option
B
96
In the absence of any agreement to the contrary, the partners have to share profits:
A)
In the ratio of their contribution to the capital of the firm
B)
In the ratio of time devoted by them to business
C)
In the ratio of sales effected by each of them
D)
In equal proportion
Answer & Solution
Answer: Option
D
97
Which of the following accounts should be credited if a debt becomes irrecoverable?
A)
Profit and loss a/c
B)
Debtors a/c
C)
Bad debs a/c
D)
Sales a/c
Answer & Solution
Answer: Option
B
98
From investor's point of view, the cost of capital is:
A)
Interest Rate
B)
Market Value
C)
Yield of Capital Sacrifice
D)
Stock Exchange Value
Answer & Solution
Answer: Option
C
99
Which of the following items will have a debit balance:
A)
Income received in advance
B)
Bank loan
C)
Prepaid insurance premium
D)
Reserve for doubtful debts
Answer & Solution
Answer: Option
C
100
Capital structure ratio
A)
Equity : Preference
B)
Equity : Reserve
C)
Equity : Debt
D)
Long term debt : Short term debt
Answer & Solution
Answer: Option
C
