Accounting - Study Mode

[#1266] When the reserve is to be capitalized the shares issued to the existing shares are called
Correct Answer

(B) Bonus share

[#1267] An arrangement under which a company raises funds by issuing securities which carry a fixed rate of interest or dividend which is less than the average earnings of the company with a view to increasing the return on equity shares, is known as:
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(C) Trading on equity

[#1268] On the admission of a new partner, Revaluation of assets and liabilities is to be made for the
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(C) mutual benefit of old and new partners

[#1269] Acid Test Ratio is:
Correct Answer

(B) Quick Assets : Current Liabilities

[#1270] Cost volume profit analysis is not based on which of the following recognition-
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(B) Quantity of stock is variable from year to year