31
It is an economic resource which is owned by a business organization and is expected to benefit future operations. It is known as
1
share capital
2
revenue
3
receipt
4
asset
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32
Bill of lading is a document used in
1
wholesale trade
2
foreign trade
3
consignment business
4
road transportation
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33
An asset is recorded in the books of accounts at
1
cost price
2
market price
3
out-of-pocket value
4
realizable value
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34
Matching concept relates to the preparation of
1
Profit and Loss Account
2
Balance Sheet
3
Cash Flow Statement
4
Fund Flow Statement
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Answer: Profit and Loss Account
35
Contingent liability is shown in the Balance Sheet under
1
Consistency Principle
2
Materiality Principle
3
Disclosure Principle
4
Going-Concern Principle
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Answer: Disclosure Principle
36
Revenue is considered as being earned, when
1
cash is received
2
production is completed
3
sale is effected
4
process is going on
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37
Subscription received in advance is
1
an income
2
an asset
3
a liability
4
an equity
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38
Goodwill is
1
a right asset
2
a fictitious asset
3
an intangible asset
4
a nominal asset
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Answer: an intangible asset
39
Premium brought in by the new partner is shared by the old partners in
1
sacrificing ratio
2
gaining ratio
3
old profit sharing ratio
4
new profit sharing ratio
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Answer: sacrificing ratio
40
On dissolution of a firm, if an unrecorded liability is paid, it is shown in
1
Debit side of Bank Account
2
Partners' Capital Account (Credit side)
3
Liability Account (Credit side)
4
Debit side of Realization Account
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Answer: Debit side of Realization Account
41
Discount allowed on reissue of forfeited shares is debited to
1
Discount on Issue of Shares Account
2
Share Forfeiture Account
3
Reissue of Shares Account
4
Share Capital Account
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Answer: Share Forfeiture Account
42
Short-term solvency is tested by
1
current ratio
2
debt-equity ratio
3
asset-turnover ratio
4
operating ratio
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43
If current ratio is 2-5 : 1 and current liabilities amount to f 80,000, current assets will amount to
1
f 1,60,000
2
f 1,80,000
3
f 2,00,000
4
f 2,40,000
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44
Showing revenue expenditure as capital expenditure is a/an
1
error of omission
2
error of commission
3
error of principle
4
compensating error
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Answer: error of principle
45
As per SEBI guidelines, the amount payable on application on each share shall not be less than what percent of the nominal value of share?
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