Accounting - Study Mode

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[#2206] "The business organization will be going concern" it is

(A) An accounting principle

(B) An accounting concept

(C) An accounting convention

(D) An accounting imagination

Correct Answer

(B) An accounting concept

[#2207] If debt is Rs. 220, cash balance is Rs. 20 and equity is Rs. 300, then the gearing ratio is

(A) 20%

(B) 40%

(C) 50%

(D) 30%

Correct Answer

(B) 40%

[#2208] A share of Rs. 20 originally issued at a discount of Rs. 2, was forfeited and the amount received on it was Rs. 4. The maximum discount on reissue of such forfeited share will be

(A) Rs. 6

(B) Rs. 4

(C) Rs. 3

(D) Rs. 5

Correct Answer

(B) Rs. 4

[#2209] "Du Pont Chart" used in financial analysis relates to analysis of:

(A) Capital Structure

(B) Liquidity position

(C) Overall performance

(D) Movement in share prices

Correct Answer

(C) Overall performance

[#2210] Match the items of list-I with those of list-II and check your answer: List-I List-II a. Accrued Interest 1. Real Account b. Special donation received for hockey tournament 2. Income and expenditure c. Football club 3. Balance sheet d. Patent Rights 4. Personal Account

(A) a-2, b-3, c-4, d-1

(B) a-3, b-2, c-4, d-1

(C) a-4, b-3, c-2, d-1

(D) a-1, b-2, c-3, d-4

Correct Answer

(A) a-2, b-3, c-4, d-1