Accounting - Study Mode

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[#1981] Which of the following is not shown on the liability side of a balance sheet of a company?

(A) Authorized capital

(B) Issued capital

(C) Paid up capital

(D) Reserve capital

Correct Answer

(D) Reserve capital

[#1982] Interest on capital is credited to . . . . . . . . account.

(A) Expenses account

(B) Income account

(C) Capital account

(D) Asset account

Correct Answer

(C) Capital account

[#1983] Valuing the stock in trade at market price or cost price which is less is an example of the convention of:

(A) consistency

(B) disclosure

(C) knowing the value

(D) None of these

Correct Answer

(D) None of these

[#1984] Which method of inventory valuation is most widely used in accounting?

(A) Cost price

(B) Market price

(C) Cost or market price whichever is greater

(D) Cost or market price whichever is lower

Correct Answer

(D) Cost or market price whichever is lower

[#1985] A manufacturing company spent the following amounts on the import and installation of machine: 1. Rs. 50,000 : Price of the machine 2. Rs. 5,000 : Freight 3. Rs. 1,050 : Insurance premium 4. Rs. 6,000 : Replacement of a part damaged intransit, not covered under the
insurance policy Based on the above data, capital expenditure would be:

(A) Rs. 50,000

(B) Rs. 56,050

(C) Rs. 62,050

(D) Rs. 51,050

Correct Answer

(C) Rs. 62,050