Accounting - Study Mode

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[#406] Depreciation Accounting is a process of:

(A) allocation of cost

(B) valuation of assets

(C) provision for replacement of assets

(D) estimation of net profit

Correct Answer

(A) allocation of cost

[#407] Which of the following accounts will invariably have a credit balance?

(A) Discount account

(B) Account payable account

(C) Cash account

(D) Purchases account

Correct Answer

(B) Account payable account

[#408] Insurance Act came in to effect in . . . . . . . .

(A) 1956

(B) 1972

(C) 1938

(D) None of these

Correct Answer

(C) 1938

[#409] The following figures are taken from a balance sheet: Equity share capital = Rs. 1,10,000 6% preference share capital = Rs. 30,000 General reserve = Rs. 50,000 Reserve for contingencies = Rs. 20,000 6% mortgage debentures = Rs. 50,000 Sundry creditors = Rs. 20,000 Preliminary expenses = Rs. 5,000 Prepaid expenses = Rs. 4,000 In this case, the debt equity ratio is:

(A) 1 : 2

(B) 2 : 1

(C) 24 : 1

(D) None of these

Correct Answer

(D) None of these

[#410] A business concern provides the following details- Cost of goods sold = Rs. 1,50,000 Sales = Rs. 2,00,000 Opening stock = Rs. 60,000 Closing stock = Rs. 40,000 Debtors = Rs. 45,000 Creditors = Rs. 50,000 The concerns, purchses would amount to (in Rs.):

(A) 130,000

(B) 220,000

(C) 260,000

(D) 290,000

Correct Answer

(A) 130,000