Accounting - Study Mode

[#2596] One of the following statements is wrong if there is absence of partnership deed.
Correct Answer

(D) Interest @ 5% is to be allowed on the partner's loan to the firm

[#2597] The surplus credit balance of share premium account is transferred to:
Correct Answer

(C) Capital reserve account

[#2598] The formula is $$ = frac{{{ ext{Debt(long term)}}}}{{{ ext{Equity(Shareholder's Funds)}}}}$$
Correct Answer

(D) Debt-Equity Ratio

[#2599] Which one of the following statements is True:
Correct Answer

(D) Subscription received in 1996 for the year 1997 will be shown on the liability side of the Balance Sheet

[#2600] In a firm, opening stock plus purchases minus closing stock is called:
Correct Answer

(B) cost of goods sold