Classical

Financial and Management Accounting - Financial and Management Accounting Questions

36:  
Which of the following statements about partnership firm is not correct?
A.

It has no separate legal existence

B.

It is managed by partners

C.
A partner can transfer his interest without the consent of other partners
D.
Acts of the partners are binding on the firm.
 
 

Option: C

Explanation :


37:  
Under the head 'fixed assets', the following items are disclosed
1. Land
2. Buildings
3. Railway sidings
4. Leaseholds
5. Goodwill
The correct chronological order of their disclosure is
A.

1,2,4,3,5

B.

5,2,1,3,4

C.

5,1,2,4,3

D.

5,2,1,4,3

 
 

Option: C

Explanation :


38:  
Which method of inventory valuation is very useful when prices are falling?
A.

Last-in-first-out

B.

First-in-first-out

C.

Average cost

D.

Base stock method

 
 

Option: C

Explanation :


39:  
Inventory is valued at cost or market price whichever is lower. This principle of valuation is based on the accounting convention of
A.

Consistency

B.

Full disclosure

C.

Conservatism

D.

Materiality

 
 

Option: C

Explanation :


40:  
Match List-I with List-II and select the correct answer using the codes given below the lists:
     List-I                                                                       List-II   
   (Particulars)                                                           (Section)
a. Liability of a partner for acts of the firm         I. Sec 31
b. Admission of a partner                                    ll. Sec. 25
c. Retirement of a partner                                   Ill. Sec. 34
d. Insolvency of a partner                                    IV. Sec.32
A.

  a   b     c    d

  I    II     III    IV

B.

  a   b     c    d

  I    II     IV    III

C.

  a   b     c    d

  II    I     III    IV

D.

  a   b     c    d

  II    I     IV    III

 
 

Option: D

Explanation :




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