Accounting - Study Mode
[#2836] Which of the following pairs is/are correctly matched?
Correct Answer
(C) When shares are issued at their face value ⇔ Shares issued at par
[#2837] After realization of investment balance of sinking fund adjustment account is transferred to
Correct Answer
(A) Profit and loss a/c
[#2838] Match the following: List-I List-II a. Goodwill of a company 1. Current liability b. Overdraft 2. Fixed assets c. Preliminary expenses 3. Reserves surplus d. Premium on issue of shares 4. Fictitious assets
Correct Answer
(D) a-2, b-1, c-3, d-4
Explanation
Solution: Goodwill of a company is considered as an intangible asset , hence it falls under fixed assets . Overdraft is a current liability as it represents the amount owed to a bank. Preliminary expenses are considered as capitalized expenses and are amortized over a period of time, hence they are part of reserves surplus . Premium on issue of shares is the amount received by the company over and above the face value of shares issued, it is categorized as fictitious assets . Correct Answer: Option D: a-2, b-1, c-3, d-4
[#2839] What type of account is revaluation account?
Correct Answer
(B) Nominal account
[#2840] Gross Book Value of a fixed assets is its
Correct Answer
(B) Historical cost