Accounting MCQs
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Question 3025hard
Assertion (A): When a company earns profit prior to its incorporation, it is called capital profit.
Reason (R): Capital profit cannot be used for distribution as a dividend to shareholders.
Which of the following is correct?
Reason (R): Capital profit cannot be used for distribution as a dividend to shareholders.
Which of the following is correct?
Question 3026hard
The following figures are taken from a balance sheet:
Equity share capital = Rs. 1,10,000
6% preference share capital = Rs. 30,000
General reserve = Rs. 50,000
Reserve for contingencies = Rs. 20,000
6% mortgage debentures = Rs. 50,000
Sundry creditors = Rs. 20,000
Preliminary expenses = Rs. 5,000
Prepaid expenses = Rs. 4,000
In this case, the debt equity ratio is:
Equity share capital = Rs. 1,10,000
6% preference share capital = Rs. 30,000
General reserve = Rs. 50,000
Reserve for contingencies = Rs. 20,000
6% mortgage debentures = Rs. 50,000
Sundry creditors = Rs. 20,000
Preliminary expenses = Rs. 5,000
Prepaid expenses = Rs. 4,000
In this case, the debt equity ratio is:
Question 3027hard
The original amount of preference share capital should be transferred to . . . . . . . . account in the time of amalgamation in the books of vendor co.
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Question 3028hard
Rs. 19,500 debited to building repairs on 31st December 1993 included Rs. 9,500 as the cost of building a small room for the watch man. A bill of Rs. 800 for colour wash of the whole building during the year was not received till 1993 December. The amount to be debited to profit and loss account would be:
Question 3029medium
Given,
Current ratio = Rs. 2.5
Quick ratio = Rs. 2.5
Net working capital = Rs. 30,000
The amount of current liabilities will be
Current ratio = Rs. 2.5
Quick ratio = Rs. 2.5
Net working capital = Rs. 30,000
The amount of current liabilities will be
Question 3030easy
Depreciation on fixed assets is:
OR
Depreciation is:
OR
Depreciation is:
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Question 3031hard
Consider the following statements.
1. The entity concept of accounting is not applicable to sole trading concerns and partnership concerns.
2. Assets are to be shown in the balance sheet at their replacement cost on liquidation.
3. Money measurement concept takes into account changes in the value of monetary unit.
4. When a creditor is paid, this results in decrease of one asset and a corresponding increase in other asset.
Which of the statements given above are correct?
1. The entity concept of accounting is not applicable to sole trading concerns and partnership concerns.
2. Assets are to be shown in the balance sheet at their replacement cost on liquidation.
3. Money measurement concept takes into account changes in the value of monetary unit.
4. When a creditor is paid, this results in decrease of one asset and a corresponding increase in other asset.
Which of the statements given above are correct?
Question 3032hard
Match List-I with List-II and select the correct answer:
| List-I | List-II |
| a. Separate Entity concept | 1. Past events |
| b. Dual Aspect concept | 2. Accounting Equations |
| c. Money Measure concept | 3. Business is distinct from its owner |
| d. Historical concept | 4. Translation of events/transaction in money terms |
Question 3033medium
Bonus shares can be issued out of
i. General reserve
ii. Capital Gain
iii. Revaluation
iv. Profit and loss (Cre.)
Which of the following is correct
i. General reserve
ii. Capital Gain
iii. Revaluation
iv. Profit and loss (Cre.)
Which of the following is correct