Classical

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

21:  
Match List-I with List-II and select the correct answer using the codes given below the lists:
    List-I                                                                                         List-II
a. Income measurement                                                  I. Accrues to owner's equity
b. Expense recognition                                                    II. Revenue recognition
c. Basis for  realisation in accounting                          Ill. Matching revenues and expenses
d. Recognised revenue                                                   IV. Accounting period

 

A.

a      b      c      d

III      IV     II      I

B.

a      b      c      d

III      IV     I      II

C.

a      b      c      d

II      III      IV     I

D.

a      b      c      d

II      III      I      IV

 
 

Option: A

Explanation :

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22:  
Identify the item that is not taken into account in computing the current ratio
A.

Land

B.

Bills recoverable

C.

Cash

D.

Bank

 
 

Option: A

Explanation :

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23:  
Expenditure incurred on research is an example of
A.

Capital expenditure

B.

Revenue expenditure

C.

Deferred revenue expenditure

D.
Partly capital expenditure are partly revenue expenditure
 
 

Option: C

Explanation :

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24:  
Match List I (organisation) with List II (Basis of membership) and select the correct answer using the codes given below the lists:
    List - I                                                                                                      List - II
a. Cooperative Society                                                        1. Collective business
b. Joint Hindu                                                                       2. Purchase/ Family Transfer of shares
c. Joint Stock                                                                        3. By virtue of company Birth
d. Partnership firm                                                              4. Common mutual interest
                                                                                                5. Mutual contract
A.

a   b    c    d

1   3     2    5

B.

a   b    c    d

5    4    1   3 

C.

a   b    c    d

4   3     2    5

D.

a   b    c    d

4    1   2    3

 
 

Option: C

Explanation :

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25:  
Amount spent on an advertisement campaign, the benefit of which is likely to last for three years is a
A.

Capital revenue expenditure

B.

Revenue expenditure

C.

Deferred revenue expenditure

D.

Contingent expenditure

 
 

Option: C

Explanation :

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