Accounting - Practice Test

[#696] You are given the following items- 1. Bill received 2. Investment 3. Debtors 4. Interest earned but not received Which of the following arrangement in order of liquidity is correct?

(A) 1, 2, 3, 4

(B) 2, 1, 4, 3

(C) 2, 3, 1, 4

(D) 3, 1, 4, 2

Correct Answer

(C) 2, 3, 1, 4

[#697] According to which of the following concepts, fixed assets are depreciated over their useful life, rather than over a shorter period, on the expectation of early liquidation?

(A) Cost concept

(B) Matching concept

(C) Going concern concept

(D) Business entity concept

Correct Answer

(C) Going concern concept

[#698] X, Y and Z are partner in a partnership firm who share profits and loses in 4 : 2 : 1. It is decided that Z's share of profit will not be less than Rs. 7,500. If profit for the year is Rs. 31,500 then how will be profit distributed between each partner?

(A) X Rs. 16,000, Y Rs. 8,000, Z Rs. 7,500

(B) X Rs. 14,000, Y Rs. 10,000, Z Rs. 7,500

(C) X Rs. 15,500, Y Rs. 8,500, Z Rs. 7,500

(D) X Rs. 18,000, Y Rs. 6,000, Z Rs. 7,500

Correct Answer

(A) X Rs. 16,000, Y Rs. 8,000, Z Rs. 7,500

[#699] The break-even chart signifies the relationship between:

(A) Cost and Volume of Sales

(B) Cost and Volume of Profit

(C) Cost and Volume of Production

(D) All the above

Correct Answer

(D) All the above

[#700] Which of the following statement is incorrect?

(A) A person who receives profits is always a partner

(B) A person who receives profits is not necessarily a partner

(C) The true test of partnership is the mutual agency, i.e., agency relationship among partners

(D) Partnership comes into existence only through an agreement

(E) Calls-in-arrear do not form part of paid-up capital

(F) Preference shareholders get dividend at flexible rate

(G) Share application account is a personal account

(H) None of the above

Correct Answer

(A) A person who receives profits is always a partner
(F) Preference shareholders get dividend at flexible rate

Accounting - Study Mode

[#696] You are given the following items- 1. Bill received 2. Investment 3. Debtors 4. Interest earned but not received Which of the following arrangement in order of liquidity is correct?

Correct Answer

[#697] According to which of the following concepts, fixed assets are depreciated over their useful life, rather than over a shorter period, on the expectation of early liquidation?

Correct Answer

[#698] X, Y and Z are partner in a partnership firm who share profits and loses in 4 : 2 : 1. It is decided that Z's share of profit will not be less than Rs. 7,500. If profit for the year is Rs. 31,500 then how will be profit distributed between each partner?

Correct Answer

[#699] The break-even chart signifies the relationship between:

Correct Answer

[#700] Which of the following statement is incorrect?

Correct Answer