Accounting - Study Mode

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[#2021] Accrual concept is related to:

(A) Revenue

(B) Items

(C) Depreciation

(D) None of these

Correct Answer

(A) Revenue

[#2022] A company wishes to issue 1,000 7% debentures of Rs. 100 each repayable after 10 years for which the company will have to incur the following expenses: Underwriting commission ⇔ 1.5% Brokerage ⇔ 0.5% Printing and Miscellaneous expenses ⇔ Rs. 1,000 The annual cost of capital would be:

(A) 7.3%

(B) 7.0%

(C) 6.5%

(D) 6.0%

Correct Answer

(A) 7.3%

[#2023] If at the end of a financial year capital is Rs. 20,000, drawing during the year is Rs. 10,000, capital at the beginning of the year is Rs. 12,000, additional capital introduced during the year is Rs. 14,000. Then find net profit for the year?

(A) Rs. 5,600

(B) Rs. 3,200

(C) Rs. 4,000

(D) Rs. 4,200

Correct Answer

(C) Rs. 4,000

[#2024] Consider the following statements: Statement (A): Balance sheet shows liquidity position of a business on a particular date. Reason (R): Balance sheet is prepared on basis of actual transactions which are recorded in the books of accounts. Give the correct answer:

(A) A and R both are correct and R is correct explanation of A

(B) A and R both are correct and R is not correct explanation of A

(C) A is correct but R is wrong

(D) A is wrong but R is correct

Correct Answer

(A) A and R both are correct and R is correct explanation of A

[#2025] The balance in the capital reduction A/c after writing off accumulated losses is transferred to:

(A) General Reserve A/c

(B) Capital Reserve A/c

(C) Share Capital A/c

(D) None of the above

Correct Answer

(B) Capital Reserve A/c