61
Given,
Total Assets Turnover
4
Net Profit
10%
Total Assets
Rs. 50,000
Net profit will be
A)
Rs. 15,000
B)
Rs. 10,000
C)
Rs. 25,000
D)
Rs. 20,000
Answer & Solution
Answer: Option
D
62
In the event of the death of a partner, the accumulated profit and losses are shared by the partners in their
A)
old profit sharing ratio
B)
new profit sharing ratio
C)
capital ratio
D)
equal ratio
Answer & Solution
Answer: Option
A
63
All the following are benefits of Accounting Standards except
A)
AS cannot override the statute
B)
AS reduce to a reasonable extent confusing variations in the accounting treatments used to prepare financial statements
C)
AS facilitates comparison of financial statements of companies
D)
AS may call for disclosure beyond that required by law
Answer & Solution
Answer: Option
A
64
Which reflects changes in the working capital?
A)
Balance sheet
B)
Sales
C)
Fund flow statement
D)
Profit
Answer & Solution
Answer: Option
C
65
Which of the following account is credited when shares are issued at a premium?
A)
Share allotment account
B)
Share forfeited account
C)
Share first call account
D)
Share premium account
Answer & Solution
Answer: Option
D
66
A machine with a written down value of Rs. 10,000 has been sold for Rs. 13,000. The amount realized is a:
A)
Capital receipt and profit involved should be transferred to capital reserve
B)
Revenue receipt
C)
Capital receipt and profit involved should be transferred to general reserve
D)
Capital receipt and profit involved should be transferred to Profit & Loss A/c
Answer & Solution
Answer: Option
D
67
Which of the following account's balance will not be transferred to realisation account?
A)
Provision for bad debts
B)
Debtors
C)
Goodwill
D)
Cash and Bank
Answer & Solution
Answer: Option
D
68
Which of the following items is a current liability:
A)
Arrears of wages
B)
Redeemable preference share
C)
Share premium
D)
Provision for machinery depreciation
Answer & Solution
Answer: Option
A
69
Statement I The profit and loss account shows the financial results of the concernfor a period.Statement II In profit and loss account, indirect expenses are charged against the gross profit.
A)
Both statements are correct
B)
Both statements are incorrect
C)
Statement I is correct, but statement II is incorrect
D)
Statement I is incorrect, but statement II is correct
Answer & Solution
Answer: Option
B
70
A transaction results in the flow of funds
A)
when a non-current asset is purchased out of a current assest
B)
when debentures are redeemed on cash
C)
when preference share capital is issued
D)
in all the above cases
Answer & Solution
Answer: Option
D
