Which one of the following statements is not true in relation to incomplete records?

(a)

It is an unscientific method of recording transactions

(b)

Records are maintained only for cash and personal accounts

(c)

It is suitable for all types of organisations

(d)

Tax authorities do not accept

Credit purchase is obtained from _______

(a)

Bills receivable account

(b)

Bills payable account

(c)

Total debtors account

(d)

Total creditors account

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

Which of the following should not be recorded in the income and expenditure account?

(a)

Sale of old news papers

(b)

Loss on sale of asset

(c)

Honorarium paid to the secretary

(d)

Sale proceeds of furniture

If the donation is received without any specific condition, then it is a __________

(a)

general donation

(b)

specific donation

(c)

donation fund

(d)

none of these

______is a fee collection from every member only once at the time of his or her admission into the organisation.

(a)

Entrance fee

(b)

Legacy

(c)

Donations

(d)

None of these

Which of the following is the incorrect pair?

(a)

Interest on drawings – Debited to capital accouunt

(b)

Interest on capital - Credited to capital account

(c)

Interest on loan - Debited to capital account

(d)

Share of profit - Credited to capital account

If a firm is maintaining both 'capital accounts' and 'current accounts' of the partners A and B. Additional capital introduced by B will be recorded in _________

(a)

B's Current Account

(b)

B's Capital Account

(c)

A'sCapital Account

(d)

A'sCurrent Account

When the average profit is Rs. 25,000 and the normal profit is Rs. 15,000, super profit is __________

(a)

Rs. 25,000

(b)

Rs. 5,000

(c)

Rs. 10,000

(d)

Rs. 15,000

Goodwill acquired by making payment in cash or kind is called __________

(a)

Purchased goodwill

(b)

Self-generated goodwill

(c)

Average goodwill

(d)

'a' and 'b'

Capital employed at the end the year is Rs. 74,20,000 profit earned Rs. 20,000. Average capital employed is__________.

(a)

Rs. 4,20,000

(b)

Rs. 4,60,000

(c)

Rs. 4,40,000

(d)

Rs. 4,00,000

Select the odd one out

(a)

Revaluation profit

(b)

Accumulated loss

(c)

Goodwill brought by new partner

(d)

Investment fluctuation fund

__________ 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

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’ was a partner in a partnership firm. He died on 31^st March 2019. The final amount due to him is Rs. 25,000 which is not paid immediately. It will be transferred to

(a)

A’s capital account

(b)

A’s current account

(c)

A’s Executor account

(d)

A’s Executor loan account

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

Which of the following statement is false?

(a)

Issued capital can never be more than the authorised capital

(b)

In case of under subscription, issued capital will be less than the subscribed capital

(c)

Reserve capital can be called at the time of winding up

(d)

Paid up capital is part of called up capital

The minimum share Application money is _______________

(a)

5% of the face value of shares

(b)

10% of the issue price of shares

(c)

Rs.1 per share

(d)

15% of the face value of shares

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

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