Accounting MCQs

If the cost of goods sold is Rs. 1,20,000 and gross loss is $${\frac{1}{4}^{{\text{th}}}}$$ of the selling price, then the selling price would be
or
If cost of goods sold is Rs. 1,20,000 and gross loss is 25% of sales, then what will be the amount of sales?

Match the items of List-I with items of List-Il and indicate of correct matching

List-I	List-II
a. Principle of separate entity	1. Valuing plant and machinery at cost less depreciation
b. Principle of conservatism	2. Recording punctuality and honesty of an organization's employees
c. Principle of money measurement	3. Capital contributed by proprietor is shown as liability in the balance sheet
d. Historical cost concept	4. Valuing inventories at cost or market price whichever is less

"Higher the ratio, the more favourable it is".
This statement does not apply with respect to

Which of the following are the consequences in case of insolvency of partner?
1. The partner adjudicated as insolvent ceases to be a partner.
2. He ceases on the date on which the order of adjudication is made.
3. The firm is dissolved on the date of the order.
4. The estate of the insolvent partner is liable for any act of the firm after the date of the order of adjudication.
5. The firm can be held liable for any acts of the insolvent partners after the date of the order of adjudication.
Select the correct answer:

Which of the following statement is true?
Redeemable Preference Shares can be redeemed

Given,

Net Profit after tax	Rs. 3,25,000
Rate of Income tax	50%
12.5% convertible debentures of Rs. 100 each	Rs. 4,00,000
Fixed assets (at cost)	Rs. 12,30,000
Depreciation up-to-date	Rs. 2,30,000
Current assets	Rs. 7,50,000
Current liabilities	Rs. 3,50,000

Return on Investment is

Cash Flow Management involves:
i. Lock-box system
ii. Marketable securities
iii. Playing the float
iv. Concentration Bank Account

Which of the following are applicable to sinking fund method of depreciation?
I. Periodic depreciation is smaller than the assets, actual annual depreciable cost
II. Amount of interest constantly declines due to assets, reducing balances
III. Annual net incidence on profit and loss account remains constant due to incorporation of only fixed depreciation
IV. Periodic depreciation is recorded through the assets account
Select the correect answer using the options given below:

The stock of stationary on 1^st January 2002 is Rs. 300, payment for stationary during the year is 2002 Rs. 1,080 and stock of stationary on 31^st December 2002 is Rs. 50. What will be the amount shown in income and expenditure account for the year ending 31^st December, 2002?