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

True financial position cannot be ascertained as _____ is not prepared due to the absence of nominal and real accounts.

(a)

Trading accounts

(b)

Profit and loss account

(c)

Balance sheet

(d)

Trail balance

If opening capital is Rs.10,000 & Closing capital is Rs.15,000 then profit or loss _________

(a)

Loss of Rs.5,000

(b)

Profit of Rs.2,500

(c)

Profit of Rs.5,000

(d)

None of these

Subscription received but not yet earned is considered as a /an _____________

(a)

Asset

(b)

Liability

(c)

Income

(d)

Expenditure

The maximum number of partners in a partnership firm is ________

(a)

25

(b)

10

(c)

30

(d)

50

___________ intervals refers to withdrawal made monthly, quarterly, half-yearly, once in 2 months and once in 4 months.

(a)

Fixed time

(b)

Current time

(c)

Average time

(d)

None of these

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

In admission undistributed profit or loss is transferred to _________

(a)

New partner's capital A/c only

(b)

Old partner's capital A/c only

(c)

All the partner's capital accounts

(d)

None of these

The balance of revaluation account shows _______ on revaluation.

(a)

Profit

(b)

Loss

(c)

Profit and loss

(d)

None of these

X, Y and Z were partners sharing profits and losses equally. X died on 1st April 2019. Find out the share of X in the profit of 2019 based on the profit of 2018 which showed Rs. 36,000.

(a)

Rs. 1,000

(b)

Rs. 3,000

(c)

Rs. 12,000

(d)

Rs. 36,000

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

Retirement / death of a partner will not be dissolution if remaining partners are _________ to continue it.

(a)

Dissolution

(b)

Optional

(c)

Agreed

(d)

All of the above

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

When the number of shares applied for is more than the number of shares of fered for subscription, it is said to be

(a)

under subscription

(b)

over subscription

(c)

application money

(d)

allotment money

_____ is a voluntary association of persons.

(a)

A company

(b)

A business

(c)

An organisation

(d)

None of these

The liability of the share holders are _____ in a company.

(a)

limited

(b)

unlimited

(c)

both 'a' and 'b'

(d)

none of these

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

A technique that is used in comparative analysis of financial statement is ___________

(a)

graphical analysis

(b)

preference analysis

(c)

common size analysis

(d)

returning analysis

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