Tag: ascertainment of profit and loss

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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

American companies prepare their financial statement in Dollars whereas Japanese companies produce financial statement in Yen. This is an example of:

  1. Stable monetary unit concept

  2. Unit of measurement concept

  3. Money value concept

  4. Current swap concept
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The unit of measure concept is a standard convention used in accounting, under which all transactions must be consistently recorded using the same currency. 

Without a common unit of measure, it would be impossible to produce financial statements.

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

Which one of the following is not an objective of the introduction of Primary Dealer System?

  1. To encourage a voluntary holding of govt. securities amongst a wider investor base

  2. To make Primary Dealer System an effective conduct of open market operations

  3. To strengthen the private equity infrastructure

  4. To strengthen the govt. securities infrastructure
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Primary Dealer System in India was introduced to strengthen government securities markets and improve liquidity, not to develop private equity infrastructure.

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

Every registered taxable person shall be entitled to take credit of input tax in his return and such input tax credit shall be credited to _______________.

  1. Personal Ledger Account

  2. Refund account

  3. Electronic Cash Ledger

  4. Electronic Credit Ledger
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Under GST law, input tax credit claimed by a registered person is credited to their Electronic Credit Ledger.

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

Financial corporations which serve individual savers and commercial mortgage borrowers are classified as ___________________.

  1. savings associations

  2. loans associations

  3. preferred and common associations

  4. savings and loans associations
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Savings and loan associations are financial institutions that specialize in accepting savings deposits and making mortgage loans.

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 objective of financial management is to ___________.

  1. generate the maximum net profit

  2. generate the maximum retained earnings

  3. generate the maximum wealth for its shareholders

  4. generate maximum funds for the firm at the least cost.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The primary objective of financial management in a corporate context is to maximize the wealth of shareholders, which is reflected in the market price of the company's shares.

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

Which of the following is the most valid reason for India to export gold to Bank of England in 1991?

  1. To set up India-UK bilateral relationship

  2. India returned UK gold

  3. To meet foreign exchange crisis

  4. For Investment in Bristish companies
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In 1991, India faced a severe balance of payments crisis and exported gold to the Bank of England to secure foreign exchange reserves.

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 overtime is resorted to at the desire of the customer, then the overtime premium ____________________.

  1. should be charged to costing profit and loss account;

  2. should not be charged at all

  3. should be charged to the job directly

  4. should be charged to the highest profit making department
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

If overtime is requested by a specific customer, the cost (including the premium) is directly attributable to that job and should be charged to it.

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

Which of the following capital is required for the registration of the company?

  1. Issued capital

  2. Subscribed capital

  3. Authorized capital

  4. Reserve capital
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Authorized capital (or nominal capital) is the maximum amount of share capital that a company is authorized to issue according to its constitutional documents.

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

Type of bonds that are issued by foreign governments or foreign corporations are classified as ______________.

  1. zero risk bonds

  2. zero bonds

  3. foreign bonds

  4. government bonds
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Bonds issued by a foreign entity in a domestic market are known as foreign bonds.

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.