Accounting - Study Mode

[#1966] Which method is legally accepted for redemption of preference share?
Correct Answer

(A) Issue of equity share

[#1967] Window dressing is prohibited because of
Correct Answer

(B) Convention of disclosure

[#1968] Arrange the steps of adjustment of partner's capital on the admission of a new partner in sequence. 1. Calculate the adjusted capital of old partners. 2. Calculate the proportionate capital of a new partner. 3. All adjustments should be made. 4. Calculate the total capital of new firm. Select the correct answer:
Correct Answer

(A) 3, 1, 4, 2

[#1969] Which of the following is not the purpose of admission of a partner?
Correct Answer

(D) For increasing competition

[#1970] What type of expenses are paid out of Gross Profit?
Correct Answer

(D) All of the above

Explanation

Solution: General expenses, Financial expenses and Selling expenses are paid out of Gross Profit.