Accounting - Study Mode
[#806] Which of the following appears in the profit and loss appropriation account?
Correct Answer
(B) Dividend
Explanation
Solution: Dividend appears in the profit and loss appropriation account. The main intention of preparing a profit and loss appropriation account is to show the distribution of profits among the partners.
[#807] Which of the following inventory valuation methods show higher profits during the period of rising prices?
Correct Answer
(A) FIFO
[#808] The main objective of providing depreciation is to
Correct Answer
(C) Create funds for replacement of fixed assets
Explanation
Solution: The main objective of providing depreciation is to Create funds for replacement of fixed assets. The main objective of charging depreciation is to accumulate adequate fund to replace old asset with the new one after the useful life. Depreciation is charged to fixed assets which helps to show the current value of the asset.
[#809] The amount received over and above the par value is credited to which account?
Correct Answer
(C) Securities Premium A/c
[#810] A Ltd. issued a prospectus inviting applications for 2,000 shares. Applications were received for 3,000 shares and pro-data allotment was made on the applications of 2,400 shares. If A has been allotted 40 shares, how many shares he must have applied for ?
Correct Answer
(C) 48