1. The claim lodged by the business to insurance company on happening the event
Correct : D. insurance claim
2. The account prepared to find out the stock as on the date of fire …..
Correct : C. Memorandum trading a/c
3. The insurance claim due to loss of stock is reduced to the proportion that the policy value bears to the value of stock
Correct : A. Average clause
4. The insurance policy is less than the value of stock
Correct : C. under insurance
5. The insurance indemnifies the insured any loss of profit arising from interruption of the normal activity
Correct : A. Loss of profit insurance
6. The claim lodged by the business to the insurance company on happening the event of loss is called …………………..
Correct : B. Insurance claim
7. When a fixed asset is destroyed ,the loss of such asset on the
date of fire can be ascertained from
Correct : C. books of accounts
8. When stock is destroyed the ………………….. of loss is difficult
Correct : A. computation
9. Business concern often suffer …………… due to different reasons
.such as fire, theft, flood, strike, etc
Correct : B. abnormal losses
10. A set of ……………… is to be followed to file a claim with the insurance company
Correct : C. procedure
11. Salvage value of stock to be ……….. from book value of stock
Correct : B. deducted
12. Average clause is a …………… in the insurance company
Correct : C. provision
13. Fire insurance policies contain an “………….” to discharge under
insurance
Correct : D. average clause
14. Fire insurance policies contain an “average clause” to discourage ……………………………..
Correct : C. under insurance
15. Net claim on under insurance is equal to Loss of stock x value of
stock On the date of fire
Correct : A. Policy value
16. Gross profit on short sales are calculated as
Correct : B. short sales x gross profit ratio
17. Short sales is the difference between …………… and actual sales
of dislocated period
Correct : C. standard sales
18. The amount of insurance ………….. to be paid at regular intervals
Correct : D. premium
19. At the time of calculating insurance claim , the average clause is ………………. If the value of stock at the date of fire was more than the policy value.
Correct : A. applicable
20. On dissolution of firm creditors are paid --------
Correct : A. First
21. Realization account is a ---------- account
Correct : C. Nominal
22. Firm’s debts are paid first out of ----------- assets
Correct : B. Firm’s
23. On dissolution, all assets excepting cash are transferred to
the ---------- side of realization account
Correct : A. Debit
24. Loss of realization is borne by the partners in their ------ ratio
Correct : C. Profit sharing
25. On dissolution of firm -------- are paid first
Correct : C. Creditors
26. When a liability is assumed by a partner his capital account
is ----------
Correct : B. Credited
27. When an unrecorded asset is taken over by one of the
partners, his capital account is ----------------
Correct : A. Debited
28. The account opened to close the various assets and
liabilities of the firm on dissolution is called ------------- account
Correct : C. Realization
29. When a firm is dissolved, project or loss on realization is
shared by the partner’s in their ------------- ratio
Correct : A. Profit sharing ratio
30. In the event of dissolution of firm the partners personal assets are first used for payment of -------------- liabilities
Correct : D. Personal
31. Goodwill appearing in the balance sheet at Rs. 10,000 proved to be valueless, is not to be recorded on the ------------------ side of realization account
Correct : B. Credit
32. On dissolution, partners loan, if any, will be paid ---------
Correct : B. Second
33. -----------of partnership firm means closing the business of
the firm
Correct : D. Dissolution
34. On dissolution, all assets except cash are transferred to
----------- of realization account
Correct : A. Debit
35. If a partner takes over some assets for value on dissolution,
realization account should be -----------
Correct : B. Credited
36. In the case of dissolution of the firm , the account opened
for closing various items in the balance sheet is called ----------------
Correct : C. Realization account
37. A partnership which can be dissolved at any time by giving
notice to other partners is known as ------------------
Correct : B. Partnership at will
38. Liabilities to third parties are paid -------------
Correct : A. First
39. The ------ has distinguished the ‘dissolution of partnership’
from ‘dissolution of firm’.
Correct : C. Indian partnership act 1932
40. Dissolution of a firm leads to
Correct : B. Closure of business
41. Amount advanced by partner over and above the capital is
paid
Correct : B. After paying outside debts
42. The nominal account prepared to close the account of
business is --------------
Correct : B. Realization account
43. Realization account is closed by transfer of profit/loss to
Correct : C. Capital accounts
44. Realization account Dr.
To partner’s capital a/c; this entry is recorded when
Correct : D. (a) and (b)
45. Realization account Dr.
To asset a/c, this entry is written
Correct : B. To close the asset account
46. Find the odd one
Correct : C. All the partners except one become insolvent
47. -------------- is a situation where in existing state of
arrangement is changed.
Correct : D. Dissolution
48. ---------------- of the Indian Partnership Act, 1932 states that when the partnership between all the partners of a firm comes to an end, it is called dissolution of the firm
Correct : B. Section 39
49. When the relation of partnership among different partners changes without affecting the entity of the firm it is called------