The excess of assets over liabilities is

(a)

Loss

(b)

Cash

(c)

Capital

(d)

Profit

Opening balance of debtors: Rs. 30,000, cash received: Rs. 1,00,000, credit sales: Rs. 90,000; closing balance of debtors is

(a)

Rs. 30,000

(b)

Rs. 1,30,000

(c)

Rs. 40,000

(d)

Rs. 20,000

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

Closing capital can be found by preparing a statement affairs at the _____ of the year.

(a)

opening

(b)

end

(c)

centre

(d)

none of these

In single entry system must suited where _________

(a)

Cash transactions are many

(b)

Cash transactions are many

(c)

Cash & Credit transactions are many

(d)

None of the above

Single entry system keeps one cash book which which mixes up business as well as _______________ transactions

(a)

Private

(b)

Public

(c)

Own

(d)

All of these

Income and expenditure account is a

(a)

Nominal A/c

(b)

Real A/c

(c)

Personal A/c

(d)

Representative personal account

The amount or property received by a non - profit organization as stated by the will of a decreased person is commonly referred to as ___________

(a)

Donation

(b)

Honorarium

(c)

Legacy

(d)

Endowment

_______are the amounts received by not for- profit organisations as a gift

(a)

Legacy

(b)

Donations

(c)

Subscription

(d)

Entrance fee

In the absence of an agreement among the partners, interest on capital is

(a)

Not allowed

(b)

Allowed at bank rate

(c)

Allowed @ 5% per annum

(d)

Allowed @ 6% per annum

Pick the odd one out

(a)

Partners share profits and losses equally

(b)

Interest on partners capital is allowed at 7% per annum

(c)

No salary or remuneration is allowed to partners

(d)

Interest on loan from partners is allowed at 6% per annum

All the transactions between the partner and the firm are recorded in the _________

(a)

capital account

(b)

drawings account

(c)

profit and loss account

(d)

revaluation account

Capital account will always show credit balance under ________ method.

(a)

Partner's current account

(b)

Partner's capital account

(c)

Both 'a' and 'b'

(d)

None of these

Identify the incorrect pair

(a)

Goodwill under Average profit method - Average profit × Number of years of purchase

(b)

Goodwill under Super profit method - Super profit × Number of years of purchase

(c)

Goodwill under Annuity method - Average profit × Present value annuity factor

(d)

Goodwill under Weighted average profit method - Weighted average profit × Number of years of purchase

Goodwill is shown under fixed assets in the ___________

(a)

Trial balance

(b)

Balance sheet

(c)

Trading account

(d)

Profit and loss account

The company earns a net profit of Rs. 24,000 with a capital of Rs. 1,20,000. The NRR is 10% under capitalisation of super profit goodwill will be ___________

(a)

Rs. 70,000

(b)

Rs. 24,000

(c)

Rs. 12,000

(d)

Rs. 1,20,000

Goodwill has _________Value

(a)

realisable

(b)

fictitious

(c)

both

(d)

none of these

The profit or loss on revaluation of assets and liabilities is transferred to the capital account of 

(a)

The old partners

(b)

The new partner

(c)

All the partners

(d)

The Sacrificing partners

Select the odd one out

(a)

Revaluation profit

(b)

Accumulated loss

(c)

Goodwill brought by new partner

(d)

Investment fluctuation fund

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

(a)

profit

(b)

loss

(c)

income

(d)

expense

________ ratio is the proportion of the profit which is sacrificed or foregone by the old partners in favour of the new partner.

(a)

Old

(b)

New

(c)

Sacrifice

(d)

Agreed

At the time admission of a new partner, general reserve is ___________

(a)

Debited to capital of old partners

(b)

Credited to capital of old partners 

(c)

Allowed to remain is balance sheet

(d)

Debited to current account

A,B and C enter into a partnership investing Rs. 35000, Rs. 45000 and 55000. Find the their respective shares in annual profit of 40,500 __________

(a)

10500, 13500, 19500

(b)

10500, 13500, 18500

(c)

10500, 13500, 17500

(d)

10500, 13500, 16500

On revaluation, the increase in liabilities leads to

(a)

Gain

(b)

Loss

(c)

Profit

(d)

None of these

X, Y and Z are partners sharing profits I the ratio of 5:3:2. If Y retires then new ratio will be ________.

(a)

5:2

(b)

5:3

(c)

3:2

(d)

1:1

At the time of forfeiture, share capital account is debited with

(a)

Face value

(b)

Nominal value

(c)

Paid up amount

(d)

Called up amount

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

The balance of forfeited share account is ____ in the Balance sheet.

(a)

added to paid up capital

(b)

added to authorised capital

(c)

deducted from paid up capital

(d)

deducted from subscribed capacity

Which of the following tools of financial statement analysis is suitable when data relating to several years are to be analysed?

(a)

Cash flow statement

(b)

Common size statement

(c)

Comparative statement

(d)

Trend analysis

Comparative statement and trend percentages are examples of ____________

(a)

Cash flow analysis

(b)

Trend analysis

(c)

Horizontal analysis

(d)

Vertical analysis

Common size statement can be prepared with ___________

(a)

double column

(b)

single column

(c)

three columns

(d)

five columns

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

(a)

Income

(b)

Profit and loss account

(c)

Balance sheet

(d)

Working capital

Debt equity ratio is a measure of

(a)

Short term solvency

(b)

Long term solvency

(c)

Profitability

(d)

Efficiency

Which one of the following is not correctly matched?

(a)

Liquid ratio – Proportion

(b)

Gross profit ratio – Percentage

(c)

Fixed assets turnover ratio – Percentage

(d)

Debt-equity ratio – Proportion

Which ratio is the proportion of fixed income bearing funds to equity shareholders funds?

(a)

Debt equity ratio

(b)

Capital gearing ratio

(c)

Proprietary ratio

(d)

Profitability ratio

______ is one of the important tools of financial analysis.

(a)

Cash flow

(b)

Profit

(c)

Ratio analysis

(d)

None of these

_____ is expressed in certain number of times of a particular figure.

(a)

Pure

(b)

Percentage

(c)

Times

(d)

None of these

____ ratio expresses the relationship between long term debt and shareholders' funds.

(a)

Debt equity

(b)

Proprietary

(c)

Capital gearing

(d)

None of these

_______ ratio is a test of the operational efficiency of the business.

(a)

Gross profit

(b)

Operating cost

(c)

Net profit

(d)

Operating profit

_____ ratio is otherwise called as Inventory turn over ratio.

(a)

Capital

(b)

Stock turn over

(c)

Proprietary

(d)

Profitability

Gross profit ratio established the relationship between ___________

(a)

Gross profit & Total sales

(b)

Gross profit & Credit Sales

(c)

Gross profit & Cash sales

(d)

None of these

____________ can be calculated by deducting cost of goods sold from sales.

(a)

Gross profit

(b)

Net profit

(c)

Gross loss

(d)

Net loss

_____________ Assets = Total current assets - (Stock + Prepaid expenses)

(a)

Current

(b)

Liquid

(c)

Fixed

(d)

Tangible

_____________ ratio determines the overall efficiency of the business

(a)

Liquid Ratio

(b)

Net Profit Ratio

(c)

Gross Profit Ratio

(d)

Solvency 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

What are the predefined Ledger(s) in Tally?
(i) Cash
(ii) Profit & Loss A/c
(iii) Capital A/c

(a)

Only (i)

(b)

Only (ii)

(c)

Both (i) and (ii)

(d)

Both (ii) and (iii)

In which voucher type credit purchase of furniture is recorded in Tally

(a)

Receipt voucher

(b)

Journal voucher

(c)

Purchase voucher

(d)

Payment voucher

Single entry mode is applicable for _________

(a)

Receipt voucher

(b)

Payment voucher

(c)

Contra voucher

(d)

All of these

__________ facilitates fast and accurate retrieval of data and information.

(a)

Computer accounting system

(b)

Accounting software

(c)

Both

(d)

None of the above

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

(a)

Purchase voucher

(b)

Sales voucher

(c)

Journal voucher

(d)

Contra voucher