Tag: elements of accounts

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Questions Related to elements of accounts

Multiple choice elements of accounts accounts from incomplete records stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs accounts from incomplete records - single entry system

__________ influence the behavior of others through their personality, skills, or other factors.

  1. Opinion leaders

  2. Direct reference groups

  3. Indirect reference groups

  4. Lifestyle groups
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Opinion leaders are individuals who exert social influence on others due to their expertise, personality, or status.

Multiple choice elements of accounts accounts from incomplete records stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs accounts from incomplete records - single entry system

The post closing trial balance shows __________________.

  1. The accounts of only incomes and expenses.

  2. The accounts of only assets and liabilities.

  3. All incomes, expenses, assets and liabilities.

  4. All incomes, expenses, assets and liabilities after all adjustments have been made.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A post closing trial balance is a trial balance which is prepared after all the temporary accounts in the general ledger have been closed. The post closing trial balance shows the total balance of permanent accounts at thee end of the reporting period. Permanent accounts are the account type found in a balance sheet, i.e., assets and liabilities such as inventories, unearned salaries, notes payable, retained earnings etc.

Multiple choice elements of accounts accounts from incomplete records stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs accounts from incomplete records - single entry system

If beginning work in process equivalent units are 2500 units, work done in current period equivalent units are 3800 units and ending work in process equivalent units are 5000, then complete equivalent units in current period are ____________.

  1. 1800 units

  2. 1600 units

  3. 1300 units

  4. 1500 units
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The equivalent units completed in the current period are calculated as: (Total units to account for) - (Beginning WIP) - (Ending WIP). However, using the standard formula for equivalent units: Current period units = (Total equivalent units) - (Beginning WIP equivalent units). Given the data, the calculation is 3800 - 2500 = 1300 units.

Multiple choice elements of accounts accounts from incomplete records stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs accounts from incomplete records - single entry system

Capital Gearing Ratio denotes the relationship between ______________.

  1. Assets and capital

  2. Loans and capital

  3. Equity share holder's funds and long-term borrowed funds

  4. Debentures and share capital
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Capital Gearing Ratio measures the proportion of a company's capital that is funded by fixed-interest securities (long-term debt) compared to equity shareholder funds.

Multiple choice elements of accounts accounts from incomplete records stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs accounts from incomplete records - single entry system

Call option is?

  1. A contract to buy a certain number of shares at a stated price within a specified period of time.

  2. A contract to sell a certain number of shares at a stated price within a specified period of time.

  3. The option of the issuing company to demand the shareholders to pay for the partly paid shares.

  4. The option available to the convertible debenture holders to demand equity shares in conversion of debentures.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A call option is an agreement that gives the option buyer the right to buy the underlying asset at a specified price within a specific time period.

Multiple choice elements of accounts accounts from incomplete records stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs accounts from incomplete records - single entry system

The expression 'firm' would include a _________________.

  1. Company

  2. LLP

  3. HUF

  4. AOP
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Under various legal frameworks, the definition of a 'firm' is often expanded to include Limited Liability Partnerships (LLP) for tax and regulatory purposes.

Multiple choice elements of accounts accounts from incomplete records stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs accounts from incomplete records - single entry system

User of financial statement includes ___________.

  1. Management

  2. Creditors

  3. Bankers

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Financial statements are reports prepared by a company's management to present the financial performance and position at a point of time. A general purpose set of financial statements usually includes a balance sheet, income statement, statement of owner's equity and statement of cash flows. 

There are various different users of financial statements, each with different information needs. Users of financial statements are management, creditors, bankers, suppliers, investors etc.

Multiple choice elements of accounts accounts from incomplete records stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs accounts from incomplete records - single entry system

The purpose of financial accounts is reporting to _________.

  1. Management 

  2. Government 

  3. Investor 

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Financial accounting is a technique of recording all the business transactions in chronological order. The recorded transactions are further classified and summarized to give a true and fair view of the financial position to all the interested parties which are management, government and investors.

Multiple choice elements of accounts accounts from incomplete records stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs accounts from incomplete records - single entry system

A company pays dividend out of _____________________.

  1. Profits of the company for year for which dividends are to be paid.

  2. Undistributed profit of the previous financial years.

  3. Money provided by the central and state governments for the payment of dividends in pursuance of their guarantors.

  4. All of these.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Dividends - Dividends are the sum of money to be paid to the members of the company out of the profits made by the company.

Sources od dividend :-
1. Profits of  the compnany for the year for which dividends are to be paid.
2. Undistributed profit of the previous financial years.
3. Money provided by the central and state governments for the payment of dividends in pursuance of their guarantors.

Multiple choice elements of accounts accounts from incomplete records stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs accounts from incomplete records - single entry system

The take over of a company in which most of the purchase price is paid with borrowed money is referred to as __________.

  1. Hostile takeover

  2. Illegal takeover

  3. Leveraged buy-out

  4. Management buy-out
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A leveraged buy out (LBO) is financial transaction in which a company purchased another company by using the borrowed money.

A leveraged buyout is the acquisition of another company using a significant amount of borrowed money (bonds or loans) to meet the cost of acquisition.