Accounting - Study Mode

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[#1226] Rearrange the following items on Asset side of the Balance Sheet of Company Account according to the Schedule VI of Part I 1. Current Assets 2. Investments 3. Fixed Assets 4. Miscellaneous expenditure

(A) 1, 2, 3, 4

(B) 1, 3, 4, 2

(C) 4, 2, 1, 3

(D) 3, 2, 1, 4

Correct Answer

(D) 3, 2, 1, 4

[#1227] Prepaid rent appearing in trial balance should be shown in

(A) Trading account

(B) Profit and loss account

(C) Liabilities side of balance sheet

(D) Asset side of balance sheet

Correct Answer

(D) Asset side of balance sheet

[#1228] Match the items in Column-I with the items in Column-2 Column-1 Column-2 a. Materiality concept 1. The same accounting method used by a firm from one period to another b. Going Concern concept 2. An inappropriate assumption of a firm being bankrupt c. Historical Cost concept 3. A normal basis used for accounting assets d. Consistency concept 4. Relates to the importance of an item or event

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

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

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

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

Correct Answer

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

[#1229] Rent earned by a trading company is:

(A) Operating income

(B) Non-operating income

(C) Current assets

(D) Other assets

Correct Answer

(B) Non-operating income

[#1230] A company can reissue its forfeited shares:

(A) At a premium

(B) At face value

(C) At a discount

(D) All the above

Correct Answer

(D) All the above