Credit purchase is obtained from _______

(a)

Bills receivable account

(b)

Bills payable account

(c)

Total debtors account

(d)

Total creditors account

Match List I with List II and Select the Correct Answer using the Codes given below.

List I		List II
(i)	Nature	1.	Needs and conveniences
(ii)	Types of accounts	2.	No legal obligations
(iii)	Lack of uniformity	3.	Real account and nominal accounts
(iv)	Suitability	4.	Unsystematic way of transactions

(a)

(i)	(ii)	(iii)	(iv)
1	2	3	4

(b)

(i)	(ii)	(iii)	(iv)
2	3	4	1

(c)

(i)	(ii)	(iii)	(iv)
4	3	1	2

(d)

(i)	(ii)	(iii)	(iv)
3	4	2	1

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 which of the following system of recording the financial statements reflect true and fair view of an entity and accounting records are considered to be more accurate?

(a)

Single entry system

(b)

Double entry system

(c)

Cash based system

(d)

All of them

Calculate the amount of net income or loss if the capital has been increased by Rs. 1,000 during this accounting period drawings Rs. 5,000 and Rs. 1,000 fresh capital was introduced in the business _______

(a)

Rs. 5,000 net loss

(b)

Rs. 5,000 net profit

(c)

Rs. 6,000 net loss

(d)

Rs. 6,000 net profit

Balance sheet is prepared under _________

(a)

Single entry system

(b)

Double entry system

(c)

Both (a) & (b)

(d)

None of these

Income and Expenditure account is based on _________

(a)

Cash accounting

(b)

Government accounting

(c)

Management accounting

(d)

Accrual accounting

_______is the remuneration paid to a person who is not a regular employee of the organization

(a)

Purchase of sports materials

(b)

Purchase of sports equipment

(c)

Honararium

(d)

Legacy

Current accounts for partners will be opened under, ____________

(a)

Fixed capital method

(b)

Fluctuating capital method

(c)

Either fixed capital method or fluctuating capital method

(d)

None of these

__________ can be computed by direct method or product method.

(a)

Interest on drawings

(b)

Interest on capital

(c)

Partners salary

(d)

Partner's commission

The monetary value of such advantage is termed as ____________

(a)

Goodwill

(b)

Bank overdraft

(c)

Capital

(d)

Cash

Average Capital employed Rs. 4,00,000

Net profit 2011	2,50,000
2012	1,00,00(Loss)
2013	4,50,000
N R R	10%

Goodwill at 3 years purchase of super profit will be __________

(a)

Rs. 1,80,000

(b)

Rs. 90,000

(c)

Rs. 1,50,000

(d)

Rs. 1,20,000

List I		List II
i)	Average profit method	1.	Excess of average profit
ii)	Weighted average profit method	2.	Present value of annuity
iii)	Super profit method	3.	Increase or decrease trend
iv)	Annuity method	4.	Past few years

(a)

(i)	(ii)	(iii)	(iv)
1	2	3	4

(b)

(i)	(ii)	(iii)	(iv)
4	3	1	2

(c)

(i)	(ii)	(iii)	(iv)
2	3	4	1

(d)

(i)	(ii)	(iii)	(iv)
3	4	2	1

In order to maintain fair dealings, at the time of admission, it is necessary to revalue assets and liabilities of the firm to their _______

(a)

Cost price

(b)

True value

(c)

Selling price

(d)

None of these

A ________ account is opened to record the increase or decrease in assets and liabilities

(a)

Capital

(b)

Partners

(c)

Revaluation

(d)

None of these

An incoming parent pays his share of goodwill in cash, and profit sharing ratio of old partner is changed, Goodwill be distributed among old partners.

(a)

As their old profit ratio

(b)

According to new ratio

(c)

According to sacrificing ratio

(d)

None of these

In partnership accounting, capital accounts are prepared under following method __________

(a)

Fluctuating

(b)

Fixed

(c)

Both (a) & (b)

(d)

None of these

At the time of retirement of a partner, calculation of new profit ratio is __________

(a)

Compulsory

(b)

Optional

(c)

Necessary

(d)

Not necessary

_________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

Revaluation account is operated to find out gain or loss at the time of ____________

(a)

Admission of a partner

(b)

Retirement of a partner

(c)

Death of a partner

(d)

All of these

When a partner dies, firm will receive the __________

(a)

1/2 amount of policy

(b)

1/4 amount of policy

(c)

3/4 amount of policy

(d)

Full amount of policy

Goodwill may be ________ if all the partners are agreed, that it should not remain in the books

(a)

Share

(b)

Distribute

(c)

Written off

(d)

None of these

Profits are distributed among the shareholders in the form of ___________

(a)

shares

(b)

dividends

(c)

both

(d)

none of these

Issue of equity shares to the existing shareholders of the company free of cost out of a accumulated profit is known as __________

(a)

private placement

(b)

public issue

(c)

rights issue

(d)

bonus issue

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

The _____ of the shareholders is limited to the face value of shares.

(a)

liability

(b)

asset

(c)

both

(d)

none of these

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

(a)

Authorised capital

(b)

Issued capital

(c)

Subscribed capital

(d)

Called up capital

When excess application money is adjusted towards allotment it is called as _____ issued capital.

(a)

30%

(b)

60%

(c)

90%

(d)

100%

A company forfeited 2,000 shares of Rs.10 each (which were issued at par) held by Mr.John for non-payment of allotment money of Rs.4 per share. The called – up value per share was Rs.9. On forfeiture, the amount debited to share capital will be

(a)

Rs.10,000

(b)

Rs.8,000

(c)

Rs.2,000

(d)

Rs.18,000

Securities Premium Reserve collected by the company can be used for:

(a)

Issue of bonus shares

(b)

Payment of dividend

(c)

Any business purpose

(d)

None of these

Which of the following are techniques, tools or methods of analysis and interpretation of financial statements?

(a)

Ratio analysis

(b)

Average analysis

(c)

Trend analysis

(d)

An of the above

________ is required in analysing the financial statements.

(a)

Expert knowledge

(b)

Quality informationHistorical dataHistorical data

(c)

Historical data

(d)

None of these

All solvency ratios are expressed in term of

(a)

Proportion

(b)

Time

(c)

Money

(d)

Percentage

Match List I with List II and Select the Correct Answer using the Codes given below.

List I		List II
(i)	Capital gearing ratio	1.	Activity ratio or Efficiency ratios
(ii)	Turnorver ratios	2.	Revenue from operations
(iii)	Fixed assets turn over ratios	3.	Earning capacity of the business
(iv)	Profitability ratios	4.	Proportion of fixed income

(a)

(i)	(ii)	(iii)	(iv)
1	2	3	4

(b)

(i)	(ii)	(iii)	(iv)
4	1	2	3

(c)

(i)	(ii)	(iii)	(iv)
3	4	1	2

(d)

(i)	(ii)	(iii)	(iv)
2	3	4	1

_____ help to assess the ability of a business concern to meet its short term financial obligations.

(a)

Long term debts ratio

(b)

Liquidity ratios

(c)

Profitability ratios

(d)

Turnover ratios

_____ ratio indicates the numbers of times the trade payable is turned over during the period in relation to net credit purchases.

(a)

Inventory turnover

(b)

Trade receivables turnover

(c)

Trade payables turnover

(d)

Fixed assets turnover

______ ratio shows the relationship between share holders fundi proprietors fund and total tangible assets.

(a)

Liquidity

(b)

Current

(c)

Proprietary

(d)

Profitability

Shareholders funds includes ________________

(a)

Equity share capital, reference share capital, reserves & surplus

(b)

Loan from bank and financial institutions

(c)

Equity share capital, reference share capital, reserves & surplus, Loan from bank and financial institutions

(d)

None of the above

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

The relationship between sales and capital employed is known as ______________

(a)

Capital Turnover Ratio

(b)

Current Ratio

(c)

Stock Turnover Ratio

(d)

Solvency Ratio

All transactions related to receipt either in cash or through bank are recorded using ____________

(a)

payment voucher

(b)

contra voucher

(c)

receipt voucher

(d)

sales voucher

List I		List II
(i)	Sales voucher	1.	2009
(ii)	Journal voucher	2.	Direct expenses
(iii)	Tally, ERP 90	3.	Provision for bad debts
(iv)	Wages	4.	F8

(a)

(i)	(ii)	(iii)	(iv)
1	2	3	4

(b)

(i)	(ii)	(iii)	(iv)
2	1	4	3

(c)

(i)	(ii)	(iii)	(iv)
3	4	2	1

(d)

(i)	(ii)	(iii)	(iv)
4	3	1	2

___________ is a document which contains details of transactions.

(a)

Voucher

(b)

Receipt

(c)

Report

(d)

Statement