Accounting - Study Mode

Show All Answers

[#76] Bank overdraft account is a:

(A) Personal Account

(B) Real Account

(C) Nominal Account

(D) All of these

Correct Answer

(B) Real Account

[#77] "Holding gains in relation to stocks should not be used for payment of dividend." Which one of the following accounting principles is involved in this?

(A) Consistency

(B) Cost

(C) Materiality

(D) Realisation

Correct Answer

(D) Realisation

[#78] The take over of a company in which most of the purchase price is paid with borrowed money is referred to as

(A) hostile takeover

(B) illegal takeover

(C) lever aged buy-out

(D) management buy-out

Correct Answer

[#79] Any revenue expenditure relating to special fund must be deducted from . . . . . . . .

(A) last fund

(B) special fund

(C) annual fund

(D) entrance fee

Correct Answer

(B) special fund

[#80] Which one of the following statements is correct?

Correct Answer

(D) Real accounts relate to assets of a business
(E) Increases in liabilities are credits and decreases are debits
(I) Depreciation is not the process of valuation of asset-it is a process of allocation of cost of asset to the period of its economic life