Following are the limitations of incomplete records except _________________

(a)

Lack of proper maintenance of records

(b)

Difficulty in preparing trial balance

(c)

Difficulty in ascertaining true profitability of the business

(d)

Suitability

Subscription due but not received for the current year is

(a)

An asset

(b)

A liability

(c)

An expense

(d)

An item to be ignored

_______Items will be recorded in the balance sheet

(a)

Revenue

(b)

Capital

(c)

Expense

(d)

None of these

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

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

Goodwill is _________.

(a)

an intangible asset

(b)

a fixed asset

(c)

realisable

(d)

all of the above

On revaluation, the increase in the value of assets leads to 

(a)

Gain

(b)

Loss

(c)

Expense

(d)

None of these

________ 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

The profit or loss arising therefrom is transferred to the capital accounts of all the partners in the _____________

(a)

New profit sharing ratio

(b)

Old profit sharing ratio

(c)

Gaining ratio

(d)

Sacrificing ratio

Capital account of a retiring partner always shows balance ___________

(a)

Credit

(b)

Debit

(c)

Asset

(d)

Liability

When shares are issued for purchase of assets, the amount should be credited to

(a)

Vendor’s A/c

(b)

Sundry assets A/c

(c)

Share capital A/c

(d)

Bank A/c

First installment called __________

(a)

application money

(b)

allotment money

(c)

first call money

(d)

final call money

_____ is a voluntary association of persons.

(a)

A company

(b)

A business

(c)

An organisation

(d)

None of these

A public issue cannot be kept open for more _____ days.

(a)

5

(b)

10

(c)

20

(d)

25

Premium received on issue of shares are shown under the head of ________________ in balance sheet

(a)

Reserves & Surplus

(b)

Current liabilities

(c)

Share capital

(d)

Capital Reserves

When figure relating to several years are considered for the purpose of analysis, the analysis is called ______________

(a)

Horizontal analysis

(b)

Vertical analysis

(c)

Trend analysis

(d)

Cash flow analysis

The _______________ statements can be compared with those of previous years.

(a)

Common-size

(b)

Comparative

(c)

Both 'a' and 'b'

(d)

None of these

Proportion of share holder's funds to total assets is called

(a)

Proprietary ratio

(b)

Capital gearing ratio

(c)

Debt equity ratio

(d)

Current ratio

_____ is a mathematical expression of relationship between two related or interdependent items.

(a)

Ratio

(b)

Cheque

(c)

Cash

(d)

None of these

_____ indicates the number of times inventory is turned over to make revenue from operations during a particular accounting period.

(a)

Inventory turnover ratio

(b)

Trade receivable turnover ratio

(c)

Trade payables turnover ratio

(d)

Fixed assets turnover ratio