The capital of a business is ascertained by preparing _________

(a)

Trading account

(b)

Statement of profit or loss

(c)

Balance sheet

(d)

Statement of affairs

Companies cannot keep books on single entry system because of ________

(a)

tax properties

(b)

legal provisions

(c)

both (a) and (b)

(d)

None of these

In _____ system, only personal and cash accounts are opened.

(a)

Single entry

(b)

Double entry

(c)

Trial balance

(d)

Balance Sheet

Identify the correct formula used to ascertain the closing capital

(a)

Opening capital + Net income - Drawings - Assets = Closing capital

(b)

Closing capital = Opening capital + Net loss - Drawings

(c)

Closing capital = Opening capital + Assets + Income - Expenses

(d)

Closing capital = Opening capital + Net income - Drawings

Total opening balances of assets and liabilities are Rs. 10,000 and Rs. 5,000 respectively. Find out the opening capital of the business ___________

(a)

Rs. 10,000

(b)

Rs. 5,000

(c)

Rs. 15,000

(d)

Rs. 50,00,000

Statement of assets & liabilities prepared under Single entry system is called _______

(a)

Balance sheet

(b)

Profit & Loss Statement

(c)

Statement of affairs

(d)

Income Statement

When B/R dishonoured is shown in the ________________ A/Cs

(a)

Debtors A/c is debited and Creditors A/c is credited

(b)

Creditors A/c is debited and Debtors A/c is credited

(c)

B/R account is debited and Creditors A/c is credited

(d)

Debtors A/c is debited and B/R A/c is credited

Which one is correct

(a)

Adjusting Closing Capital = Closing capital + Drawings - Additional Capital

(b)

Adjusting Closing Capital = Closing capital - Drawings - Additional Capital

(c)

Adjusting Closing Capital = Additional Capital + Drawings - Closing Capital

(d)

None of these

Which of the following is to be recorded in an income and expenditure account?

(a)

Purchase of a fixed asset

(b)

Capital expenditure incurred on a fixed asset

(c)

Profit on the sale of a fixed asset

(d)

Sale of a fixed asset

Capital fund also called as ___________

(a)

accumulated fund

(b)

special fund

(c)

donation fund

(d)

none of these

________is a revenue expenditure

(a)

Specific donation

(b)

Honararium

(c)

Legacy

(d)

Interest on investment

The balance in the appropriation account is transferred to the partner's capital account in the ________

(a)

agree ratio

(b)

sacrifice ratio

(c)

profit sharing ratio

(d)

old ratio

Interest on capital is calculated on the __________

(a)

Opening capital

(b)

Closing capital

(c)

Average capital

(d)

None of these

__________ is a form of organization where two or more persons carryon some business acting on the basis of agreement among them.

(a)

Partnership firm

(b)

Sole proprietorship

(c)

Joint Hindu Family

(d)

Company

The debit balance of the current account, will be shown in the ____________ side of the balance sheet.

(a)

liabilities

(b)

assets

(c)

debit

(d)

credits

Goodwill is to be valued when ____________

(a)

amalgamation takes place

(b)

a partner is admitted

(c)

one company takes over another company

(d)

all of the above

_________ Cannot be seen or touched.

(a)

Computer

(b)

Machinery

(c)

Goodwill

(d)

All of these

Goodwill is not a ________ asset

(a)

Fixed

(b)

Current

(c)

Fictitious

(d)

None of these

When an unrecorded liabilities is brought into books, is results in

(a)

profit

(b)

loss

(c)

income

(d)

expense

__________ created out of profit to adjust the reduction in the market value of the investments.

(a)

Invest fluctuation fund

(b)

Capital fund

(c)

Fixed capital method

(d)

Fluctuating capital fund

Balance sheet items like profit and loss account transferred to_________.

(a)

old partners only

(b)

new partner s only

(c)

retired partners

(d)

none of these

The partner admitted into partnership firm acquires two rights. i.e.,right to share in the _________ of the partnership and right to share in the _________.

(a)

Liabilities & Profit

(b)

Liabilities & Loss

(c)

Both (a) & (b)

(d)

Assets & Profits

Sumit and Ravi started a business by investing Rs. 85000 and 15000 respectively. In what ratio the profit earned after 2 years be divided between Sumit and Ravi respectively.

(a)

17:1

(b)

17:2

(c)

17:3

(d)

17:4

The policy amount received from the insurance company is used to settle the amount due to the __________

(a)

Increased partner

(b)

Deceased partner

(c)

Partnership at will

(d)

Partnership deed

_________maybe dissolved at any time by a partner serving notice on the other partners

(a)

Partnership at deed

(b)

Dissolution of partnership

(c)

Partnership at will

(d)

All of the above

The accounting procedure at the retirement of a partner involves _____________

(a)

As their old profit ratio

(b)

According to new ratio

(c)

According to sacrificing ratio

(d)

None of these

At the time of dissolution all the assets of firm are transferred to the realization A/c _________

(a)

Market Value

(b)

Book Value

(c)

Cost Value

(d)

Bale Value

Kayal, Mala and Neela are partners sharing profits in the ratio of 2:2:1. Kayal retires and the new profit sharing ratio between nila and neela is 3:2. Calculate the gaining ratio.

(a)

2:1

(b)

1:2

(c)

1:1

(d)

3:1

The capital of companies is divided into small units called __________

(a)

shares

(b)

debentures

(c)

dividend

(d)

none of these

Issue of equity shares to the public through prospectus by a public company is call ___________

(a)

Public issue

(b)

Private placement

(c)

Rights issue

(d)

Bonus issue

First installment called __________

(a)

application money

(b)

allotment money

(c)

first call money

(d)

final call money

When a shareholder fails to pay the amount due on allotment or on calls, the amount remaining unpaid is known as

(a)

calls in advance

(b)

calls in arrears

(c)

under subscription

(d)

over subscription

_____ represents that part of authorised capital which is offered for subscription.

(a)

Authorised capital

(b)

Issued capital

(c)

Subscribed capital

(d)

Called up capital

Indian companies act, 20B, interest may be paid on calls in advance if Articles of Association so provide not exceeding _____ per annum.

(a)

6%

(b)

10%

(c)

12%

(d)

15%

The part of the _____ capital not offered for subscription to the public is known as unissued.

(a)

issued

(b)

subscribed

(c)

unpaid

(d)

authorised

According to Table - A, interest charged on calls in advance is _____ %

(a)

4%

(b)

5%

(c)

6%

(d)

3%

Penalty for delay in refunding application money ___________________

(a)

6%

(b)

5%

(c)

15%

(d)

20%

Holders of preference shares will have a right to vote if the dividend remains in arrears for a period not less than ___________

(a)

2 years

(b)

3 years

(c)

6 years

(d)

None of the above

Shareholder are the __________________

(a)

Owner of the company

(b)

Lenders of the company

(c)

Customers of the company

(d)

All of these

Preparation of common size statements and computation of ratios are examples of __________

(a)

Ratio analysis

(b)

Vertical analysis

(c)

Horizontal analysisNone of these

(d)

None of these

___________ includes manufacturing account and trading and profit and loss account.

(a)

Income statement

(b)

Expenditure statement

(c)

Financial statement

(d)

None of these

_________ refers to the excess of current assets over current liabilities.

(a)

Income

(b)

Profit and loss account

(c)

Balance sheet

(d)

Working capital

All profitability ratios are expressed in terms of ___________

(a)

Proportion

(b)

Percentage

(c)

Times

(d)

Money

Current assets of a business concern is Rs.60,000 and current liabilities are Rs.30,000. Current ratio will be ___________

(a)

1:2

(b)

1:1

(c)

2:1

(d)

3:2

______ gives the proportion of current assets to current liabilities of a business concern.

(a)

Current ratio

(b)

Turn over ratio

(c)

Quick ratio

(d)

None of these

_____ ratio measures the firm ability to pay off its current dues.

(a)

Current

(b)

Absolute

(c)

Liquid

(d)

Debt

The relationship of Gross profit to sales is known as _____________

(a)

Net profit ratio

(b)

Net loss ratio

(c)

Gross profit ratio

(d)

Gross loss ratio

In the Balance sheet of a firm, the debt equity ratio is 2:1. The amount of long term sources is Rs.12 lacks. What is the amount of tangible net worth of the firm?

(a)

Rs.12 lacks

(b)

Rs.8 lacks

(c)

Rs.4 lacks

(d)

Rs.2 lacks

Company Restore option is available in _________

(a)

Configuration

(b)

Company features

(c)

Company Information

(d)

Both 'a' and 'b'

_________ are used for recording both cash and credit purchases of goods.

(a)

Purchase voucher

(b)

Sales voucher

(c)

Journal voucher

(d)

Contra voucher