Accounting - Study Mode

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[#876] Capital employed is equal to

(A) Equity

(B) Long term debt

(C) Both A and B

(D) None of the above

Correct Answer

(C) Both A and B

[#877] Given, Current Assets Rs. 4,00,000 Current Liabilities Rs. 1,60,000 Reserves & Surplus Rs. 1,60,000 Proprietary Ratio (Fixed Assets/Proprietary Funds) 0.75 Fixed Assets will be

(A) Rs. 7,20,000

(B) Rs. 7,60,000

(C) Rs. 8,00,000

(D) Rs. 9,60,000

Correct Answer

(A) Rs. 7,20,000

[#878] Consider the following information: Share capital Rs. 2,00,000 Long term debts Rs. 1,00,000 Current liabilites Rs. 40,000 Fixed assets Rs. 1,80,000 Current assets Rs. 1,60,000 The Solvency ratio of the business is

(A) 2.43 : 1

(B) 3 : 2

(C) 3.4 : 1.7

(D) 4.75 : 1.43

Correct Answer

(A) 2.43 : 1

[#879] While preparing accounting records 'Window Dressing' is prohibited due to:

(A) Convention of conservation

(B) Convention of disclosure

(C) Convention of materiality

(D) Money measurement concept

Correct Answer

(B) Convention of disclosure

[#880] Match the following: List-I List-II a. . . . . . . . . is difference between old ratio and new ratio. 1. Dissolution b. Dissolution of partnership all the partners of firm is called . . . . . . . . of firm 2. Admitted c. A minor can be . . . . . . . . to the benefits. 3. Duties d. Every partner is bound to attend diligently to his . . . . . . . . 4. Sacrificing ratio

(A) a-4, b-3, c-1, d-2

(B) a-4, b-1, c-2, d-3

(C) a-4, b-3, c-2, d-1

(D) a-3, b-4, c-1, d-2

Correct Answer

(B) a-4, b-1, c-2, d-3