Financial & Corporate Accounting
1. Owner’s capital includes:
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Answer: B. Equity shares
2. Rebate on bill discounted is:
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Answer: B. A liability
3. If opening stock is Rs. 10,000, net purchases Rs. 70,000, wages Rs. 2,500, carriage inward Rs. 500 and closing stock Rs. 15,000, what is the manufacturing cost?
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Answer: C. Rs 68,000
4. What is the correct sequence of the following actions required for the preparation of financial accounts?
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Answer: C. (ii), (i), (iv), (iii)
5. X and Y are partners sharing profits in 2:1. Z is admitted with 1/3 profit sharing. What will be the new profit sharing ratio of X, Y, and Z?
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Answer: B. 4:3:2
6. Some money is distributed between A and B in the ratio 2:3. If A receives Rs 72, then B receives:
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Answer: C. Rs 108
7. (½+⅓) : (½ x ⅓)
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Answer: C. 5:1
8. Which one of the following will not affect the working capital?
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Answer: A. Realization of cash from debtors
9. Provision for bad debts is made as per:
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Answer: B. Conservatism Concept
10. In India, which of the following is prepared on the guidelines of AS-3 (Accounting Standard-3)?
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Answer: C. Cash Flow Statement
11. Right shares enjoy preferential rights with regard to:
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Answer: D. None of the above
12. Sweat Equity is:
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Answer: A. ii and iii