Accounting - Study Mode
[#391] Assertion (A) Premium received on issue of shares is credited to share premium account, but not to profit and loss account. Reason (R) Since, share premium is not a trading profit, it is not distributed to shareholders.
Correct Answer
(A) Both (A) and (R) are true and (R) is the correct explanation of (A)
[#392] Assets are shown in balance sheet in order of
Correct Answer
(A) In order of permanence
[#393] Dissolution of partnership must take place when:
Correct Answer
(D) a partner dies
[#394] If the withdrawals are made by the partners evenly in the beginning of each month, interest is usually calculated for the whole of the amount (annual) for:
Correct Answer
(D) 6 and half months
[#395] In certainty equivalent approach, adjusted cash flows are discounted at:
Correct Answer
(D) Risk Free Rate