Accounting - Study Mode

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[#2816] On dissolution of a partnership firm the debit balance of profit and loss A/c is transferred to:

(A) Realisation A/c

(B) Reserve A/c

(C) Revalution A/c

(D) Partner's Capital A/c

Correct Answer

(D) Partner's Capital A/c

[#2817] Nominal A/c is:

(A) Wages A/c

(B) Patent A/c

(C) Prepaid A/c

(D) All of these

Correct Answer

(A) Wages A/c

[#2818] Which of the following items will not be included in Income and Expenditure Account of a club:

(A) Sale of old news papers

(B) Loss on the sale of an asset

(C) Payment of honorarium

(D) Amount of sale of furniture

Correct Answer

(D) Amount of sale of furniture

[#2819] Which of the following are examples of cash flow from operating activities as per AS-7? 1. Cash receipts from the sale of goods and the rendering of services. 2. Cash receipts from disposal of intangible assets. 3. Cash receipts from royalties, fees, commissions and other revenue. 4. Cash payments to suppliers for goods and services. 5. Cash proceeds from issuing shares or other similar instruments. 6. Cash payments to and on behalf of employees. Select the correct answer:

(A) 1, 3, 4 and 6

(B) 2, 5 and 6

(C) 1, 2, 3 and 4

(D) 2, 3, 4 and 6

Correct Answer

(A) 1, 3, 4 and 6

[#2820] Those assets which are purchased to increase profitability in business and not to be resold are called

(A) Intangible asset

(B) Current asset

(C) Fixed asset

(D) Depreciable asset

Correct Answer

(C) Fixed asset