accounting questions with answers
2,134 multiple-choice questions. Open any question for its answer and explanation.
- Match the following. List-I List-II a. Absorption 1. Profit on reissue of shares is to be transferred to . . . . . . . . b. Accumulated losses and fictitious assets 2. When there are one or more liquidation and no formation, it is known as . . . . . . . . c. Consolidated revenue profits 3. Internal reconstruction is generally resorted to write off . . . . . . . . d. Capital reserve 4. The group share of proposed dividends by the subsidiary is added to . . . . . . . .
- Under which section of the Companies Act provision has been made for the use of share premium?
- Profit on revaluation of assets in case of retirement of a partner shall be distributed to capital accounts of
- The amount of depreciation provided in the Sinking Fund Method when compared to Annuity Method is
- When fixed cost is Rs. 10,000 and the profit volume ratio is 20% then break even point will be
- A and B are equal partners. When partnership was dissolved their capitals are Rs. 30,000 and Rs. 40,000 respectively. After all assets are sold and liabilities paid, there is cash balance of Rs. 60,000. The amount of profit or loss on realisation is
- Pre-acquisition profit in a subsidiary company is considered as
- A journal entry, in which two or more accounts are debited/credited, is known as
- The stock of stationary on 1st January 2002 is Rs. 300, payment for stationary during the year is 2002 Rs. 1,080 and stock of stationary on 31st December 2002 is Rs. 50. What will be the amount shown in income and expenditure account for the year ending 31st December, 2002?
- If the net sales of the year is Rs. 2,50,000 and the debtors is Rs. 50,000, then the average collection period will be
- An adjustment entry for prepaid expenses affects
- Over-capitalisation can be remedied
- On dissolution of a firm, if goodwill does not appear in the Balance Sheet of the firm, it is
- Accounts do not record
- A decreasing current ratio indicates
- Which of the following is not a business activity?
- In the absence of any contract to the contrary, profit on dissolution of a partnership firm is credited to the partner's capital accounts
- Assertion (A): Premium receivedon issue of shares is credited to share premium account but not to profit and loss account. Reason (R): Since share premium is not a trading profit, it is not distributed to shareholders.
- Total capital employed is equal to
- On the insolvency of partner, the deficiency of his capital account is borne by the solvent partners, according to the decision of Garner Vs. Murray's in
- Read the following Assertion (A): ''Share premium cannot be utilised for any purpose other than mentioned in Sec. 78 of the Companies Act." Reason (R): "Share premium is a capital receipt." Select the correct answer
- Assets and liabilities are . . . . . . . . for determination of capital?
- Net profit + Non cash expenses = ?
- The current ratio of X limited is 2 : 1 and the quick ratio is 1.5 : 1. If the current liability is Rs. 80,000, then the value of the stock will be
- On purchase of old furniture Rs. 8,000 were spent on its repairs. This amount should be debited to
