Classical

Financial and Management Accounting - Financial and Management Accounting Practice Questions

6:  
Which of the following statements is not correct?
A.
In case of life membership fees, if it is amortised over a period of time, a separate life membership fund is created.
B.
If the amount of general donation is very large, it can be treated as a capital receipt.
C.
If the amount of legacy is small, it can be credited to income and expenditure account.
D.
The gift is not a restricted fund from the point of view of organisation.
 
 

Option: D

Explanation :


7:  
Any amount to be written off after the admission of a partner is transferred to the capital accounts of all partners in
A.

Their capital ratio

B.

New profit sharing ratio

C.

Old profit sharing ratio

D.

Sacrificing ratio

 
 

Option: B

Explanation :


8:  
Capital profits can be distributed as dividend only if
1. The Articles of a company permit.
2. They are realised in cash
3. The surplus remains after the revaluation of all assets
4. The capital losses have been written off.
Select the correct answer using the codes given below:
A.

1,3 and 4

B.

1 and 4

C.

2 and 3

D.

1,2,3 and 4

 
 

Option: D

Explanation :


9:  
According to the guidelines issued by SEBI, a company has to create Debenture Redemption Reserve equivalent to --- of the amount of debentures issue before redemption of debentures commences.
A.

25%

B.

50%

C.

60%

D.

75%

 
 

Option: B

Explanation :


10:  
Under the head 'current liabilities', the following items are disclosed
1. Sundry creditors
2. Acceptances
3. Unclaimed dividends
4. Advance payments
5. Subsidiary companies
The correct chronological order of their disclosure is
A.

2,1,5,4,3

B.

1,2,4,3,5

C.

2,1,3,4,5

D.

1,2,3,4,5

 
 

Option: A

Explanation :




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  • These questions answers can be used in the preparation of ugc net exams.
  • These questions can be downloaded as Financial and management  accounting online study material pdf.
  • This section can be used for the preparation of quizzes by any commerce student.
  • This section can also be used by commerce students for improving their knowledge in Financial and management accounting
  • These mcq can also be used by any student of XI or XII standard who has opted to study commerce to increase his knowledge.