Accounting - Study Mode

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[#586] From the following statements related to insolvency account mark your answer according to the answer code given: i. List A contains particulars relating to unsecured creditors. ii. All taxes due are considered preferential creditors. iii. Properties held by the insolvent in the fiduciary capacity can be distributed amongst his creditors. iv. List D contains the particulars relating to assets and properties.

(A) i and ii are correct

(B) i and iii are correct

(C) i and iv are correct

(D) ii and iv are correct

Correct Answer

(A) i and ii are correct

[#587] 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

(A) 25%

(B) 30%

(C) 40%

(D) 50%

Correct Answer

(D) 50%

[#588] A Trial Balance shows

(A) The balance of Profit and Loss Account

(B) Complete accuracy of accounting done by the accountant

(C) Arithmetical accuracy of ledger balances

(D) Balance between assets and liabilities

Correct Answer

(C) Arithmetical accuracy of ledger balances

[#589] Consider the following statements: Assertion (A): Value added statement is an improvement over the traditional method of preparing profit and loss account. Reason (R): Value added statement reflects the profit added by the firm and the share of various stockeholders of the business. Now, select your answer:

(A) Both A and R are true and R is the correct explanation of A

(B) Both A and R are true but R is not the correct explanation of A

(C) A is true but R is false

(D) A is false but R is true

Correct Answer

(A) Both A and R are true and R is the correct explanation of A

[#590] Assets of a business means:

(A) Liabilities - Capital

(B) Cash + Capital

(C) Liabilities + Capital

(D) Capital - Drawings

Correct Answer

(C) Liabilities + Capital