Accounting - Practice Test

[#881] Which of the following is not a current asset?

(A) Bank overdraft

(B) Closing stock

(C) Debtors

(D) Bills receivable

(E) Stock

(F) Preliminary expenses

(G) Debtors

(H) Cash balance

Correct Answer

(A) Bank overdraft
(F) Preliminary expenses

[#882] Capital Redemption Reserve Account is available for

(A) redemption of redeemable preference shares

(B) redemption of redeemable debentures

(C) reorganisation of share capital

(D) issue of bonus shares

Correct Answer

(A) redemption of redeemable preference shares

[#883] Which one of the following statements about the admission of a new partner to a firm is true:

(A) In case memorandum account is opened, the assets and liabilities appear in the new Balance Sheet at their revised values

(B) In case the newly admitted partner pays cash for his share of goodwill, it will be credited to old partner's capital accounts in their sacrificing ratio

(C) All accumulated profits and reserves are to be transferred to the profit and loss adjustment account on admission of a new partner

(D) When goodwill account is appearing in the books at a proper value, the new partner has to pay proportionate amount by way of good will to the old partners

Correct Answer

(B) In case the newly admitted partner pays cash for his share of goodwill, it will be credited to old partner's capital accounts in their sacrificing ratio

[#884] Amount set aside to meet losses due to bad debts is a

(A) Reserve

(B) Provision

(C) Liability

(D) None of these

Correct Answer

(B) Provision

[#885] When fixed cost is Rs. 7,000, profit is Rs. 3,000 and sales is Rs. 50,000 the profit volume ratio will be

(A) 14%

(B) 6%

(C) 20%

(D) None of these

Correct Answer

(C) 20%

Accounting - Study Mode

[#881] Which of the following is not a current asset?

Correct Answer

[#882] Capital Redemption Reserve Account is available for

Correct Answer

[#883] Which one of the following statements about the admission of a new partner to a firm is true:

Correct Answer

[#884] Amount set aside to meet losses due to bad debts is a

Correct Answer

[#885] When fixed cost is Rs. 7,000, profit is Rs. 3,000 and sales is Rs. 50,000 the profit volume ratio will be

Correct Answer