41
Receipts and payments Account is a summary of:
A)
Income and Expenditure Account
B)
Cash Book
C)
Balance Sheet
D)
Bank Account
Answer & Solution
Answer: Option
B
42
In what order, the following assets are shown in the balance sheet of a company?
A)
ii, i, iv, iii
B)
i, ii, iii, iv
C)
iii, iv, i, ii
D)
iv, iii, ii, i
Answer & Solution
Answer: Option
C
43
In the context of dissolution of a firm, which of the following statements is true:
A)
Dissolution of a firm automatically result in dissolution of a partnership
B)
Only firm's assets can be used for payment of firm's liabilities
C)
Partner's loan is transferred to the Realisation account with other liabilities of the firm
D)
A loan from partner's wife is transferred to the partner's loan account
Answer & Solution
Answer: Option
A
44
Under Royalty Accounts, if there is strike for a certain period then:
A)
Royalty is reduced proportionately
B)
Short workings is reduced proportionately
C)
Minimum rent is reduced proportionately
D)
All of the above
Answer & Solution
Answer: Option
C
45
Sale proceeds of grass in case of a sport club is:
A)
a capital receipt
B)
an asset
C)
a revenue receipt
D)
None of the above
Answer & Solution
Answer: Option
C
46
"Higher the ratio, the more favourable it is".
A)
Stock Turnover Ratio
B)
Net Profit Ratio
C)
Gross Profit Ratio
D)
Operating Ratio
Answer & Solution
Answer: Option
D
47
The Gross Working Capital means
A)
Total Current Assets + Total Current Liabilities
B)
Total Current Assets - Total Current Liabilities
C)
Total of Current Assets
D)
None of these
Answer & Solution
Answer: Option
C
48
Cash discount allowed to a debtor should be credited to
A)
Discount Account
B)
Customer's Account
C)
Sales Account
D)
Purchases Account
Answer & Solution
Answer: Option
B
49
Insurance expenses paid to bring an equipment from the place of purchase to the place of installation is a type of
A)
Revenue expenditure
B)
Capital expenditure
C)
Deferred revenue expenditure
D)
Operating expense
Answer & Solution
Answer: Option
B
50
In case of Installment Payment System, which one of the following statements is not true?
A)
Payment of purchase price is made in agreed installments
B)
On default of payment of installment, seller has a right to take back the goods
C)
Purchaser prepares Assets Account, Seller's Account and Interest Suspense Account in his books
D)
Purchaser has right to sell the asset at any time after receiving the delivery
Answer & Solution
Answer: Option
B
