Accounting - Study Mode

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[#1321] Consider the following statements: Assertion (A): If a shareholder fails to pay the amount of one or more calls on his shares, the company may forfeit his shares. Reason (R): Even after the forfeiture of shares, that shareholder is responsible to pay the amount due from him until the company receives full amount on those shares. Now select your answer:

(A) Both A and R are true and R is the correct explanation of A

(B) Both A and R are true but R is not the correct explanation of A

(C) A is true but R is false

(D) A is false but R is true

Correct Answer

(C) A is true but R is false

[#1322] Match List-I with List-II and select the correct answer: List-I List-II a. VED Analysis 1. Sources and uses of funds b. Ratio Analysis 2. Inventory control c. Funds Flow Analysis 3. Analysis & Interpretation of Financial Statement d. Income & Expenditure Analysis 4. Non-Profit organization

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

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

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

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

Correct Answer

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

[#1323] The balance of Debenture Sinking Fund is finally transferred to

(A) Profit and Loss account

(B) Debenture Redemption Fund investment account

(C) General Reserve

(D) Capital Reserve

Correct Answer

(C) General Reserve

[#1324] Match List I with List II and select your answer: List-I List-II a. Cash 1. Equity Share Capital b. Profit 2. Fixed Assets c. Discount on issue of Shares 3. Fictitious Assets d. Machinery & Plant 4. Current Assets

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

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

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

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

Correct Answer

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

[#1325] The balance of which of the following items can also show the credit balance?

(A) Cash

(B) Bank

(C) Investment

(D) Stock

Correct Answer

(B) Bank