Accounting - Study Mode

[#1681] Which one of the following is NOT true about revenue expenditure?
Correct Answer

(B) They improve the financial position of the business

Explanation

Solution: Revenue expenditure does not improve the financial position of the business. Revenue expenditures are typically referred to as ongoing operating expenses.

[#1682] Which one of the following statement is CORRECT about long term liabilities?
Correct Answer

(B) These consist of all debts, payabke after 12 months

Explanation

Solution: Long term liabilities consist of all debts, payabke after 12 months. Long-term liabilities are obligations not due within the next 12 months or within the company's operating cycle if it is longer than one year.

[#1683] Which one of the following can offer its share to public at large?
Correct Answer

(B) Listed company

Explanation

Solution: Listed company can offer its share to public at large. Listed company is a corporation whose ownership is dispersed among the general public in many shares of stock which are freely traded on a stock exchange or in over-the-counter markets.

[#1684] The persons who sign Articles and Memorandum of the company and contribute in the initial share capital of the company are called
Correct Answer

(A) Subscribers

Explanation

Solution: The persons who sign Articles and Memorandum of the company and contribute in the initial share capital of the company are called Subscribers. They are called subscribers because, as part of the company formation.

[#1685] Which of the following are the owners of a company?
Correct Answer

(C) Shareholders

Explanation

Solution: Shareholders are the owners of a company. A shareholder, also referred to as a stockholder, is any person, company, or institution that owns at least one share of a company's stock.