Accounting - Study Mode
[#2111] Wages paid for erection of new plant (machinery) should be debited to:
Correct Answer
(C) Plant account
[#2112] If the purchase consideration is calculated by adding the various payments to be made, the method is called
Correct Answer
(C) Net payment method
[#2113] The estimated life of a machine costing Rs. 9,00,000 is 9 years. The firm follows the 'Sum of Year Digit' Method of depreciation. The amount of depreciation provision on the machine in the sixth year of its life will be:
Correct Answer
(C) Rs. 80,000
[#2114] Consider the following statements- Statement (A): Ratio analysis is an important tool to gain knowledge about the financial soundness of a company. Reason (R): Ratio analysis is the only for an indicator to decide whether to invest or not in a company. Give the correct answer:
Correct Answer
(C) A is correct but R is wrong
[#2115] Which of the following is the use of funds:
Correct Answer
(D) All of the above