Accounting - Study Mode

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[#551] Which of the following is not correctly matched? In the term of Activity and Flow of Fund.

(A) Increase in working capital ⇔ Application of fund

(B) Depreciation ⇔ Sources of fund

(C) Taking long-term loan ⇔ Sources of fund

(D) Purchase of fixed assets by cash ⇔ Application of fund

Correct Answer

(B) Depreciation ⇔ Sources of fund

[#552] Which of the following are correct regarding rights of partners? 1. A partner has the right to allow the admission of a new partner. 2. Every partner has a right to take part in the management of business. 3. Every partner has a joint ownership of partnership property. 4. Every partner has a right to share the profit not the losses with other partners. 5. Every partner has a right to inspect the books of account and have a copy of the same. 6. In case of emergency, a partner has a right to act as a man of prudence. Select the correct answer:

(A) 1, 2, 3, 4

(B) 2, 3, 4, 6

(C) 3, 4, 5, 6

(D) 2, 3, 5, 6

Correct Answer

(D) 2, 3, 5, 6

[#553] The partnership may come to an end due to the

(A) Death of a partner

(B) Insolvency of a partner

(C) Consent of all partners

(D) All of the above

Correct Answer

(D) All of the above

[#554] Making the provision for bad and doubtful debts in anticipation of actual bad debts is on the basis of:

(A) Convention of disclosure

(B) Convention of consistency

(C) Convention of conservatism

(D) Convention of disclosure and consistency

Correct Answer

(C) Convention of conservatism

[#555] Which of the following are methods of calculating goodwill? 1. Average profit method 2. Super profit method 3. Log method 4. Sum of years digit method 5. Capitalisation of average profit method 6. Capitalisation of super profit method 7. FIFO method Select the correct answer:

(A) 1, 2, 5 and 6

(B) 1, 2, 4 and 5

(C) 1, 2, 4 and 6

(D) 1, 2, 6 and 7

Correct Answer

(A) 1, 2, 5 and 6