A)
Cash Flow Statement
B)
Fund Flow Statement
C)
Accounting for Depreciation
D)
None of these
Answer & Solution
Answer: Option
A
2
Which one of the following statement is not true?
A)
The object of trial balance is to test the accuracy of the books
B)
Trial balance provides basis for preparation of final accounts
C)
Errors of principles do not affect the agreement of the trial balance
D)
Compensatory errors are also known as equalising errors
Answer & Solution
Answer: Option
A
3
Gross Profit is equal to
A)
Sales - Closing stock
B)
Sales - Cost of goods sold
C)
Sales - (opening stock + Purchases + Closing stock)
D)
(Sales + Closing stock) - (opening stock + Purchase + all direct and indirect expenses)
Answer & Solution
Answer: Option
B
4
Dissolution of partnership between all partners of firm is called . . . . . . . .
A)
dissolution of firm
B)
dissolution of partnership
C)
dissolution of firm name
D)
none of the above
Answer & Solution
Answer: Option
A
5
Amount received from joint life policy in case of a death of a partner will be credited in partner's capital account to
A)
To all partners in profit sharing ratio
B)
To remaining partners in profit sharing ratio
C)
to only deceased partner's account
D)
None of the above
Answer & Solution
Answer: Option
A
6
In case of a company, total assets less outside liabilities is called:
A)
Net working capital
B)
Gross working capital
C)
Deferred liabilities
D)
Net worth
Answer & Solution
Answer: Option
D
7
For paying liabilities not taken over by the purchasing company, the vendor company credits
A)
Realisation A/c
B)
Bank A/c
C)
Liabilities A/c
D)
Assets A/c
Answer & Solution
Answer: Option
B
8
A motor car which was purchased for Rs. 20,000 had its book value Rs. 12,000 was sold for Rs. 25,000, the capital profits will be:
A)
Rs. 5,000
B)
Rs. 8,000
C)
Rs. 13,000
D)
Rs. 25,000
Answer & Solution
Answer: Option
C
9
If a machinery of Rs. 7,20,000 is purchased against the issue of fully paid shares of Rs. 8,00,000, then balance of Rs. 80,000 is debited to
A)
Goodwill account
B)
Capital reserve account
C)
Profit and Loss account
D)
Discount on the issue of shares account
Answer & Solution
Answer: Option
D
10
The minimum amount that should be called by a company with application for its shares is the following per cent of face value of shares:
A)
2%
B)
5%
C)
10%
D)
15%
Answer & Solution
Answer: Option
B
