Classical

Financial and Management Accounting - Financial and Management Accounting Questions

31:  
All information which is of material interest to --- should be disclosed in accounting statements.
1. Proprietors  2. Creditors
3. Investors     4. Debtors
Select the correct answer using the codes given below:
 
 
A.

1 and 2

B.

2 and 3

C.

1,3 and 4

D.

1,2 and 3

 
 

Option: D

Explanation :


32:  
Which of the following statements is correct?
1. Indian Companies Act, 1956 restricts the maximum number of members in partnership.
2. The Partnership Act implies that a partnership firm cannot be formed to carry on a charitable work.
3. To become a partner, sharing of profits by the member is not necessary.
4. To become a partner, sharing of losses by the member is not necessary.
Select the correct answer using the codes given below:
A.

2 and 4

B.

1,2 and 3

C.

1,2 and 4

D.

1,2,3 and 4

 
 

Option: C

Explanation :


33:  
Under the head 'current liabilities', the following items are disclosed in the Final Accounts of a company
1. Short term loan
2. Acceptance or Bills Payable
3. Sundry creditors
4. Unclaimed dividend
5. Outstanding expenses and Advance Incomes
6. Interest accrued and due on loans 
Select the correct answer using the codes given below:
A.

2,3,4 and 5

B.

1,2,3 and 5

C.

1,2,3 and 6

D.

1,2,3,4,5 and 6

 
 

Option: A

Explanation :


34:  

----- reserve refers to the amount which are not free for distribution by way of dividend, whereas ------- reserve refers to the amount which are free for distribution by way of dividend.

A.

Depreciation, Revaluation

B.

Revenue, Capital

C.

Capital, Revaluation

D.

Capital, Revenue

 
 

Option: D

Explanation :


35:  
The main objective of providing depreciation is
A.

To calculate true profit

B.
To show the true financial position in the balance sheet
C.

To reduce tax burden

D.
To provide funds for replacement of fixed assets
 
 

Option: B

Explanation :




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