Accounting - Study Mode

Show All Answers

[#1461] Registration of transfer of share is done

(A) In the agency

(B) In the company

(C) With the registrar of companies

(D) With the central government

Correct Answer

(B) In the company

[#1462] Closing stock Rs. 53,400, cost of good sold Rs. 75,000 gross profit Rs. 5,000, purchases Rs. 82,000. Value of opening stock will be

(A) Rs. 46,400

(B) Rs. 41,400

(C) Rs. 60,400

(D) Rs. 55,400

Correct Answer

(A) Rs. 46,400

[#1463] Which one of the following statement is correct?

(A) Subscription received in advance is not shown in Receipts and Payments account

(B) Expenses and incomes on accrual basis are not shown in Receipts and Payments account

(C) Capital receipts and capital expenditures are recorded in Income and Expenditure account

(D) It is essential that balance sheet should accompany receipts and payments account

(E) A company consists of heterogeneous members

(F) A body corporate includes a cooperative society

(G) The expression 'corporation' or 'body corporate' are same

(H) A partner cannot contract with his firm, where as a member of a company can

Correct Answer

(B) Expenses and incomes on accrual basis are not shown in Receipts and Payments account
(H) A partner cannot contract with his firm, where as a member of a company can

[#1464] Assertion (A): When a company earns profit prior to its incorporation, it is called capital profit. Reason (R): Capital profit cannot be used for distribution as a dividend to shareholders. Which of the following is correct?

(A) (A) is correct, but (R) is incorrect

(B) Both (A) and (R) are correct

(C) (A) is incorrect, but (R) is correct

(D) Both (A) and (R) are incorrect

Correct Answer

(B) Both (A) and (R) are correct

[#1465] Inventory turnover ratio is

(A) Activity Ratio

(B) Profitability Ratio

(C) Solvency Ratio

(D) Liquidity Ratio

Correct Answer

(A) Activity Ratio