Accounting - Study Mode

[#606] Which of the following items is a current liability:
Correct Answer

(A) Arrears of wages

[#607] Statement I The profit and loss account shows the financial results of the concernfor a period. Statement II In profit and loss account, indirect expenses are charged against the gross profit.
Correct Answer

(B) Both statements are incorrect

[#608] A transaction results in the flow of funds
Correct Answer

(D) in all the above cases

[#609] Which of the following items is not taken in profit and loss appropriation account?
Correct Answer

(C) Provision for taxation

[#610] If the current ratio of a company is 2 : 1, which of the following transactions would improve the ratio?
Correct Answer

(D) Payment of current liabilities