Classical

Financial and Management Accounting - Financial and Management Accounting MCQ

71:  

Choose the wrong statement

A.
Overhaul expenses of secondhand machinery purchased are revenue expenditure
B.
Legal fee to acquire property is capital expenditure
C.
Expenses in connection with obtaining a licence for running the cinema is capital expenditure
D.
Amount spent for the construction of temporary hunts, which were necessary for the construction of the cinema house and were demolished when the cinema house was ready, is capital expenditure
 
 

Option: A

Explanation :


72:  
Consider the following statements:
Redeemable preference shares can be redeemed out of
1. Sale proceeds of the new issue of shares
2. Sale proceeds of the new issue of debentures
3. Profits available for dividends
4. Sales proceeds of the assets of the company
Of these statements
A.

1 and 3 are correct

B.

1 alone is correct

C.

2, 3 and 4 are correct

D.

1, 2, 3 and 4 are correct

 
 

Option: A

Explanation :


73:  

Accounting is concerned with

A.

Monetary transactions

B.

Non-monetary transactions

C.

Monetary and non-monetary transactions

D.

None of the above

 
 

Option: A

Explanation :


74:  
Which of the following accounting equation is correct?
A.

Capital + Liabilities= Assets

B.

Capital = Assets + Liabilities

C.

Capital- Liabilities = Assets

D.

Capital + Assets =  Liabilities

 
 

Option: A

Explanation :


75:  
Goods withdrawn by the proprietor for his personal use are
A.

Shown as a deduction from the purchases

B.

Shown as a deduction from the sales

C.

Treated as sales at cost price

D.

Added to the purchases

 
 

Option: A

Explanation :




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