Accounting - Study Mode

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[#2691] A concern should select an accounting policy which enables it to

(A) pay the proper amount of income tax

(B) calculate the correct amount of cash in hand

(C) present a true and fair view of its state of affairs and profit or loss

(D) Both A and B

Correct Answer

(C) present a true and fair view of its state of affairs and profit or loss

[#2692] If the operating ratio is 75% then the net ratio will be

(A) 15%

(B) 25%

(C) 20%

(D) None of these

Correct Answer

(B) 25%

[#2693] A powerhouse originally built for Rs. 4,00,000 is to be replaced by a new one. The total cost of consturction is Rs. 14,00,000. But the estimated cost of construction of the original size powerhouse at present is Rs. 6,00,000. The revenue cost will be

(A) Rs. 4,00,000

(B) Rs. 4,50,000

(C) Rs. 5,00,000

(D) Rs. 6,00,000

Correct Answer

(D) Rs. 6,00,000

[#2694] Match List-I with List-II and select the correct answer: List-I List-II a. Measurement of income 1. Accrues to the equity of owners b. Recognition of expense 2. Recognition of revenue c. Basis of realization 3. Matching revenue with expenses d. Identification of revenue 4. Accounting period

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

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

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

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

Correct Answer

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

[#2695] A and B are partners sharing profit and losses in 3 : 2. C is admitted in the firm for $${frac{1}{5}^{{ ext{th}}}}$$ share and he brings Rs. 10,000 as capital. What will be adjusted capital of B?

(A) Rs. 10,000

(B) Rs. 12,000

(C) Rs. 14,000

(D) Rs. 16,000

Correct Answer

(D) Rs. 16,000