Accounting - Study Mode

Show All Answers

[#526] If closing stock is shown in Trial Balance, then it should be shown in

(A) Trading A/c

(B) Balance Sheet

(C) Cash A/c

(D) Profit & Loss A/c

Correct Answer

(B) Balance Sheet

[#527] The term 'Funds' as used in Funds Flow Analysis means

(A) Cash

(B) Current assets

(C) Current liabilities

(D) Current assets (-) Current liabilities

Correct Answer

(D) Current assets (-) Current liabilities

[#528] Dividends are usually paid on

(A) Paid up capital

(B) Authorised capital

(C) Called up capital

(D) Issued capital

Correct Answer

(A) Paid up capital

[#529] X Ltd purchased 70% of the shares of Y Ltd at a price of Rs. 1,00,000. The share capital of Y Ltd was Rs. 70,000, and its accumulated profits amounted to Rs. 90,000. What would be the amount of minority interest in the consolidated balance sheet?

(A) Rs. 25,000

(B) Rs. 70,000

(C) Rs. 1,00,000

(D) Rs. 40,000

Correct Answer

[#530] Which one of the following statements is FALSE:

(A) Accounting is commonly treated as language of business

(B) There are many views about accounting principles

(C) There is no application of conservatism principle in accounting

(D) Accounting is based on accounting equation

(E) Realisation A/c is credited when the assets are realised

(F) Realisation A/c is directly credited when unrecorded asset is realised

(G) When goodwill is given in the books of a firm, then on dissolution of the firm goodwill A/c is also transferred to realisation A/c

(H) In case of gradual realisation of assets, the cash will be distributed amongst the partners in their profit-sharing ratio though their capitals are not in their profit-sharing ratio

Correct Answer

(C) There is no application of conservatism principle in accounting
(H) In case of gradual realisation of assets, the cash will be distributed amongst the partners in their profit-sharing ratio though their capitals are not in their profit-sharing ratio