Quiznetik

Financial Accounts | Set 1

1. In order to find out additional capital of any partner as per surplus capital method of a particular partner whose proportional capital compared to other partner's capital is

Correct : C. Less

2. Before distributing cash amongst partners whatever profit or loss and reserves as per the balance sheet

Correct : B. Will be distributed amongst partners as per their P/L sharing ratio

3. If there is Debit balance of any one partner's capital account the same will be distributed amongst the remaining partners

Correct : B. As per their Profit and Loss sharing ratio

4. In piecemeal Distribution according to Surplus capital method, final deficit of each partner

Correct : B. Will be in ratio of profit and loss

5. Salesmen's salary is divided between two periods in

Correct : B. Turnover ratio

6. Preliminary expenses are apportioned between two periods in

Correct : D. Post Inc. Period

7. Profit of post-incorporation period is called

Correct : A. Revenue Profit

8. The profit earned from the date of purchase till incorporation is considered as

Correct : B. Capital Profit

9. Director's salary is divided between prior period and post incorporation period in

Correct : D. None of the above

10. Depreciation is calculated on the asset purchased by company in

Correct : C. Post Incorporation Period

11. If there is a loss prior to incorporation, it will be debited to

Correct : B. Goodwill Account

12. The Companies Act provides that minimum amount of             of the face value of shares must be paid along with the application

Correct : A. 0.05

13. According to Table 'A', a company can charge annual interest on calls-in-arrears at

Correct : B. 0.05

14. According to Table 'A', annual interest on calls-in-advance should be

Correct : C. Not more than 6%

15. When a company pays remuneration to its promoters by issuing shares to them, then

Correct : A. Goodwill Account is debited

16. When shares are Forfeited, then the amount called up on Forfeited shares is debited to

Correct : A. Share Capital Account

17. When Forfeited shares are reissued, then the discount allowed should be             the amount received from old share holders

Correct : C. Not more than

18. When all the Forfeited shares are not reissued, then the proportionate amount in             must be kept in that account

Correct : B. Forfeiture Share Account

19. When the amount of premium on forfeited shares has not been received, then with the proportionate amount of premium

Correct : A. Security Premium Account is debited

20. When shares have been issued at discount, then the proportionate amount of discount on forfeited shares should be

Correct : B. Credited to Shares Discount Account

21. The maximum rate of interest paid by a company on Calls- in-advance as per Table 'A' is

Correct : B. 0.06

22. The maximum rate of interest received by a company on Calls-in-arrears as per Table 'A' is

Correct : D. 0.05

23. A company can issue bonus share out of the following

Correct : D. all of these

24. When shares are to be redeemed out of profits, a sum equal to nominal amount of shares redeemed is to be transferred to

Correct : B. Capital Redeemption Reserve

25. when company issues bonus share then its share price immediately

Correct : B. decrease

26. The premium paid on redeemption of Preference Shares is provided from

Correct : A. Security Premium Account

27. Minimum time period for two bonus issue must be

Correct : D. none of tese

28. Redeemable Preference Shares can not redeemed at

Correct : C. Discount

29. Under Section 80, Preference Shares are redeemed out of amount received from

Correct : D. All of the Above

30. company can issue bonus share out of source of

Correct : C. Capital Reserve

31. Bonus to existing shareholders is paid to them

Correct : C. in the form of the share

32. Prepaid Income Tax is shown in

Correct : A. Asset side

33. Forfeited Call on shares is shown in

Correct : A. Capital Account

34. For preparing Final Accounts, Preliminary expense not written off is shown in

Correct : A. Balance Sheet

35. Unclaimed dividend is shown under the head

Correct : A. Current Liability

36. Debenture discount is shown under the head

Correct : D. Profit and Loss Account

37. Bank Over draft is shown under the head

Correct : C. Current Liability and Provision

38. Interest accrued and not due is shown under the head

Correct : C. Current Liability and Provision

39. Interest accrued and not due on unsecured loan is shown under the head

Correct : B. Unsecured loan

40. Preliminary Expenses are shown in

Correct : B. Asset side