Accounting - Study Mode

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[#2501] A Purchases returns of Rs. 200 to Mr. P if entered in the sales book would affect:

(A) P's account

(B) purchases returns account

(C) sales account

(D) purchases returns account and sales account

Correct Answer

(D) purchases returns account and sales account

[#2502] The balance of cash account indicates . . . . . . . .

(A) net income for the period

(B) net loss for the period

(C) net worth of the business

(D) net cash on hand

Correct Answer

[#2503] Wages is an example of:

(A) capital expenses

(B) indirect expenses

(C) direct expenses

(D) revenue expenses

Correct Answer

[#2504] Which of the following statements is not correct?

(A) The amount received by selling goods and services is called revenue

(B) The money invested by owner in the business is called capital

(C) The grouping of transaction of same nature at one place is called recording

(D) Assets - External liablities = capital

(E) Managerial accounting and cost accounting both are complementary to each of the in nature

(F) Managerial accounting is concerned with the accounting information that is useful to management

(G) Managerial accounting includes details of quantitative information only

(H) Managerial accounting depends on cost accounting

Correct Answer

(C) The grouping of transaction of same nature at one place is called recording
(G) Managerial accounting includes details of quantitative information only

[#2505] When capitals of partners are fluctuating, then in the case of dissolution of the firm, the deficiency of the insolvent partner's capital is borne by the solvent partners according to Garner Vs. Murrary decision:

(A) In their profit-sharing ratio

(B) In the ratio of their capitals as they stood before the commencement of dissolution

(C) In the ratio of their capitals arrived at after the adjustment of accumulated profit & loss on realisation but before profit and loss on realisation

(D) In the ratio of their capital arrived at after the adjustment of accumulated profit & loss and profit & loss on realisation

Correct Answer

(C) In the ratio of their capitals arrived at after the adjustment of accumulated profit & loss on realisation but before profit and loss on realisation