Accounting - Practice Test

[#1286] Capital Profits are earned from:

(A) Sale of Current Asset

(B) Sale of Fixed Asset

(C) Capital Restructuring

(D) Business Transactions

Correct Answer

(B) Sale of Fixed Asset

[#1287] Which of the following should be deducted from the share capital to find out paid-up capital?

(A) Calls-in-advance

(B) Calls-in-arrear

(C) Securities premium

(D) Bonus

Correct Answer

(B) Calls-in-arrear

[#1288] The accounting concepts which help in ascertaining the profit/loss correctly are:

(A) Realisation and matching

(B) Going concern and business

(C) Cost and equivalence

(D) Money measurement and cost

Correct Answer

(A) Realisation and matching

[#1289] Which of the following is not a source of funds:

(A) Purchase of machinery

(B) Profit earned during the year

(C) Issue of share capital

(D) Long term loan raised

(E) Issue of share capital

(F) Sale of fixed assets

(G) Issue of bonus shares

(H) Share premium

Correct Answer

(A) Purchase of machinery
(G) Issue of bonus shares

[#1290] Which one of the following is not a clerical error?

(A) Error of omission

(B) Error of commission

(C) Error of principle

(D) Compensating error

Correct Answer

(C) Error of principle

Accounting - Study Mode

[#1286] Capital Profits are earned from:

Correct Answer

[#1287] Which of the following should be deducted from the share capital to find out paid-up capital?

Correct Answer

[#1288] The accounting concepts which help in ascertaining the profit/loss correctly are:

Correct Answer

[#1289] Which of the following is not a source of funds:

Correct Answer

[#1290] Which one of the following is not a clerical error?

Correct Answer