Accounting - Study Mode

Show All Answers

[#1626] The standard is contained in the cost method-

(A) Fixing the estimated cost

(B) Determination of standard cost

(C) Fixing the budgeted cost

(D) In minimizing losses

Correct Answer

(A) Fixing the estimated cost

[#1627] The strongest letter of credit is

(A) Confirmed and irrecoverable

(B) Cancelable

(C) Irrecoverable

(D) Confirmed

Correct Answer

(A) Confirmed and irrecoverable

[#1628] Profit earned before acquisition of share is treated as

(A) capital profit

(B) revenue profit

(C) general reserve

(D) revaluation loss

Correct Answer

(A) capital profit

[#1629] Arrange the following steps of preparation of consolidated balance sheet correctly. 1. Calculation of pre-acquisition profits 2. Calculation of minority interest 3. Calculation of post-acquisition profits 4. Calculation of cost of capital

(A) 4, 3, 2, 1

(B) 2, 4, 1, 3

(C) 3, 1, 4, 2

(D) 3, 4, 1, 2

Correct Answer

(B) 2, 4, 1, 3

[#1630] Match the following: List-I List-II a. Interest on partner's capital is chargeable to the extent of available . . . . . . . . 1. competing b. The amount due to the retiring partner can be made by . . . . . . . . payment method. 2. mutual c. A partner must not carry on a . . . . . . . . business. 3. profit d. Partners are . . . . . . . . for each other. 4. lumpsum

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

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

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

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

Correct Answer

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