Accounting - Study Mode

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[#2511] Patent rights account is:

(A) Personal Account

(B) Real Account

(C) Nominal Account

(D) All of the above

Correct Answer

(B) Real Account

[#2512] Which of the following statement is correct?

(A) Accounting principles represent laws fixed by the respective governments

(B) Accounting principles represent laws fixed by accounting expert

(C) Accounting principles represent inviolable laws fixed by a legal board

(D) Accounting principles represent a consensuses at a particular time to the recording of accounting transactions

(E) Rights shares are first offered to employees

(F) Rights shares are offered in lieu of dividends

(G) Rights shares are offered to the existing shareholders in proportion to the equity shares held by them

(H) Rights shares are those shares which are offered to the promoters

Correct Answer

(D) Accounting principles represent a consensuses at a particular time to the recording of accounting transactions
(G) Rights shares are offered to the existing shareholders in proportion to the equity shares held by them

[#2513] Read the following statements and mark your answer: i. Return on Investment (R.O.I.) is calculated as part of final accounts preparation exercise ii. Inventory valuation is a must for ascertaining profit by preparation of Trading Account iii. Operational audit is a statutory requirement for a company auditor iv. Garner Vs. Murray case relates to settlement of accounts on insolvency of a partner of the firm

(A) i and iv are correct

(B) ii and iv are correct

(C) ii and iii are correct

(D) i and iii are correct

Correct Answer

(B) ii and iv are correct

[#2514] Interest on calls in arrears according to Table 'A' is charged at

(A) 5%

(B) 6%

(C) 12%

(D) 18%

Correct Answer

(A) 5%

[#2515] Given, Cash Rs. 10,000 Creditors Rs. 12,000 Debitors Rs. 20,000 Bills payable Rs. 8,000 Stock Rs. 30,000 Bank loan Rs. 10,000 If bank loan is increased by Rs. 20,000. the current ratio will decrease by

(A) 20%

(B) 25%

(C) 30%

(D) 40%

Correct Answer

(A) 20%