Accounting - Study Mode
[#2126] Current Cost Accounting method attempted to match the current incomeagainst which cost?
Correct Answer
(B) Current cost
[#2127] The adjusted net profit of a business is Rs. 2,00,000 and the amount of capital employed is Rs. 12,50,000. If goodwill is to be calculated on basis of 3 year purchase of super profit and the normal rate of return is 10% then the value of goodwill will be
Correct Answer
(B) Rs. 22,50,00
[#2128] Which type of share hold only one right and that of a fixed rate of dividend
Correct Answer
(D) Non-participating
Explanation
Solution: In accounting, a Non-participating share holds only one right, which is that of a fixed rate of dividend. Non-participating shares do not have the additional right to participate in any further profits beyond the fixed dividend rate. Therefore, the correct option is Non-participating .
[#2129] A and B were Sharing Profit of a business in the ratio of 3 : 2. They admit C into partnership, who gets $$frac{1}{3}$$ of the share of profit from A, $$frac{1}{2}$$ of the share of profit from B. What will be the new profit sharing ratio now:
Correct Answer
(B) 2 : 1 : 2
[#2130] Cumulative Preference Shareholders can claim unpaid dividend of earlier years as a matter of right only when:
Correct Answer
(D) Directors propose to pay dividend to equity shareholders before giving dividends to them