Classical

Financial and Management Accounting - Financial and Management Accounting Practice Questions

16:  
Which of the following statements is not correct?
A.
A minor can only be admitted to the benefits of an existing partnership with the consent of all the partners.
B.
A minor partner is not personally liable for the debts of the partnership firm.
C.
A minor is not liable to share the loss, if there is any
D.

None of the above

 
 

Option: D

Explanation :


17:  

GAAP stands for?

A.

Generally Accepted Accounting Principles

B.

General Annual Accounting Principles

C.

General Accepted Accounting Practices.

D.

None of the above

 
 

Option: A

Explanation :


18:  
Under the head 'Provisions', in the balance sheet of a company, the following provisions made for, are to be disclosed:
1. Proposed dividends
2. Provision for taxation
3. For contingencies
4. For provident fund scheme
5. For insurance, pension and similar staff benefit schemes
The correct chronological order of their disclosure is
A.

1,2,3,4,5

B.

2,1,4,5,3

C.

2,1,3,4,5

D.

1,2,4,5,3

 
 

Option: C

Explanation :


19:  
Which of the following reserves cannot be utilised for making the partly paid up shares fully paid up?
1. Capital Redemption Reserve Account
2. Securities Premium Account
3. Plant Revaluation Reserve
Select the correct answer using the codes given b elow:
A.

1 and 2

B.

2 and 3

C.

1 and 3

D.

1,2 and 3

 
 

Option: D

Explanation :


20:  
A firm is compulsorily dissolved when
1. All the partners except one become is insolvent.
2. The business becomes illegal
3. All the partners become insolvent.
Select the correct answer using the codes given below:
A.

1 and 2

B.

2 and 3

C.

1 and 3

D.

1,2 and 3

 
 

Option: D

Explanation :




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