Classical

Financial and Management Accounting - Financial and Management Accounting Multiple Choice Questions

11:  
Match List I with List II and select the correct answer using the codes given below the lists:
    List I                                                                                        List  II
a. Heavy amount of premium on redemption of            1. Capital expenditure
    preference shares
b. Excess of sale proceeds of fixed                                 2. Deferred revenue expenditure
    assets over their original cost
c. Cost of  installation of an old machine                       3. Capital gain
d. Freight paid on purchase of raw material                 4. Revenue expenditure
A.
a  b  c  d
2  3  4  1
B.
a  b  c  d
3  2  4  1
C.
a  b  c  d
2  3  1  4
D.
a  b  c  d
3   2  1  4
 
 

Option: C

Explanation :


12:  
A, B and C were partners sharing profits in the ratio of 3 : 5 : 7. C retires and his share were taken up by A and B in the ratio of 3: 2. What is new ratio? 
A.

13:12

B.

2:13

C.

6:7

D.

7:6

 
 

Option: B

Explanation :


13:  

What does the 'net worth' of a business signify?

A.

Total assets

B.

Current - total liabilities

C.

Fixed assets - current assets

D.

Total assets - total liabilities

 
 

Option: D

Explanation :


14:  
Match the following by writing the number of correct choice
Column A                                                                        Column B
(i) Debit and Credit Vouchers are also called     (a) Non-cash  transactions
(ii) Credit vouchers are prepared for                     (b) Cash payment of the business
(iii) Transfer Vouchers are prepared for               (c) Cash Vouchers
(iv) Debit Vouchers are prepared for                     (d) Cash receipts of the business
 
A.

 i       ii      iii     iv

(c)   (d)   (a)   (b)

B.

 i       ii      iii     iv

(a)   (b)    (c)   (d)   

C.

 i       ii      iii     iv

(d)   (c)    (b)   (a)   

D.

 i       ii      iii     iv

(c)   (a)    (b)   (d)   

 
 

Option: A

Explanation :


15:  

Which of the following is a type of partner?

A.

Sleeping or Dormant

B.

Nominal

C.

Minor

D.

All of the above

 
 

Option: D

Explanation :




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