51
If the articles of association of the company remains silent as the rate of interest to be paid for calls in arrears the directors can charge interest:
A)
6% per annum
B)
6.5% per annum
C)
5% per annum
D)
5.5% per annum
E)
In between 5.5% and 6.5% per annum
Answer & Solution
Answer: Option
C
52
Unearned income is considered as
A)
Assets
B)
Liability
C)
Loss
D)
Capital
Answer & Solution
Answer: Option
B
53
Find the cost of closing stock from the following
A)
Rs. 60,000
B)
Rs. 80,000
C)
Rs. 1,00,000
D)
Rs. 1,20,000
Answer & Solution
Answer: Option
B
54
Capitalist industries results in
A)
Decrease in capital creation over time
B)
Increase in capital
C)
Increase in service employment
D)
Increase in income tax
Answer & Solution
Answer: Option
A
55
If the fixed cost is Rs. 40,000, variable cost per unit Rs. 2 and if the selling price per unit is Rs. 3. What will break even point (in-units)?
A)
20,000 units
B)
30,000 units
C)
40,000 units
D)
50,000 units
Answer & Solution
Answer: Option
C
56
When amalgamation is in the nature of merger, the accounting method to be followed is
A)
equity method
B)
purchase method
C)
pooling of interest method
D)
consolidated method
Answer & Solution
Answer: Option
C
57
The main objective of preparing Income and Expenditure Account is to know:
A)
Cash Balance
B)
Financial Condition
C)
Total Sales Proceeds
D)
Surplus or Deficit
Answer & Solution
Answer: Option
D
58
Which of the following will not be the source for buying back of shares by a company?
A)
Company's free reserves
B)
Company's securities premium A/c
C)
Proceeds of any shares or other specified securities as per Section 77A (i) (iii)
D)
Company's borrowings from financial institutions
Answer & Solution
Answer: Option
D
59
Which of the following redeemable preference share due at Rs. 10 per share is suitable for redemption?
A)
On which only Rs. 2 application money has been paid
B)
On which application money and Rs. allotment money has been paid
C)
On which Rs. 7.50 per share has been paid
D)
On which Rs. 10 per share has been paid
Answer & Solution
Answer: Option
D
60
Which one of the following is not a method of depreciation?
A)
Insurance policy method
B)
Depreciated return method
C)
The sum of the year digits method
D)
Replacement cost method
Answer & Solution
Answer: Option
B
