Accounting - Study Mode

Show All Answers

[#856] Which of the following is not correctly matched? (Class : Ratio)

(A) Profitability ⇔ Operating Ratio

(B) Activity ⇔ Proprietary Ratio

(C) Liquidity ⇔ Current Ratio

(D) Long term Solvency ⇔ Debt equity ratio

Correct Answer

(B) Activity ⇔ Proprietary Ratio

[#857] What is the underlying concept that support the immediate recognition of an estimated loss?

(A) Substance over form

(B) Consistency

(C) Matching

(D) Prudence

Correct Answer

(D) Prudence

[#858] Which of the following statement is/are true? 1. Tax shield on depreciation and interest is an important variable both for the lessor and the lessee. 2. Lease transactions in India are governed by the lease act. 3. A lessee should evaluate the lease options against the buying option. 4. As per AS-19, financial lease is shown in the balance sheet of the lessee as an asset.

(A) Both 1 and 4

(B) 1, 3 and 4

(C) 2, 3 and 4

(D) Only 2

Correct Answer

(C) 2, 3 and 4

[#859] When all the debentures are redeemed, the balance left in the Debenture Sinking Fund Account is transferred to

(A) Debentures account

(B) Sinking Fund Investment Account

(C) Capital Redemption Reserve Account

(D) General Reserve Account

Correct Answer

(D) General Reserve Account

[#860] In what order following items should be shown in company's balance sheet? i. Goodwill ii. Investment iii. Creditors iv. Preliminary expenses Choose answer from one of the options

(A) ii, iii, iv, i

(B) i, ii, iii, iv

(C) i, ii, iv, iii

(D) I, iii, iv, ii

Correct Answer

(B) i, ii, iii, iv