Accounting - Study Mode

Show All Answers

[#2076] Money received on issue of share which is more than the nominal value of shares is credited to which account?

(A) Security premium account

(B) Discount account

(C) Share capital account

(D) Profit and loss account

Correct Answer

(A) Security premium account

[#2077] Net asset of a business on 1 st January and 31 st January are Rs. 39,000 and Rs. 38,000 respectively. Additional capital and drawing made by owner during the month is Rs. 2,000 and Rs. 6,000. What is net income earned during the month of January?

(A) Rs. 1,000 (Loss)

(B) Rs. 3,000

(C) Rs. 5,000

(D) Rs. 4,000

Correct Answer

(B) Rs. 3,000

[#2078] A company proposes to introduce a new product in the market. The company wants to maintain P/V Ratio at 25%. If variable cost of the product is 300, what will be the selling price?

(A) Rs. 100

(B) Rs. 200

(C) Rs. 300

(D) Rs. 400

Correct Answer

(D) Rs. 400

[#2079] Which of the following is not a ratio for analysis of profitability?

(A) Operating ratio

(B) Net Profit ratio

(C) Acid test ratio

(D) None of these

Correct Answer

(C) Acid test ratio

[#2080] The surplus or deficit revealed by income and expenditure account is transferred to:

(A) Receipts and payments account

(B) Profit and loss account

(C) Capital account

(D) Capital fund

Correct Answer

(D) Capital fund