Tag: meaning, importance and specimen of journal

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Multiple choice book keeping and accountancy accounting equation and business transactions meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

Fresh capital introduction will increase _______________.

  1. Assets and Liabilities

  2. Assets and Equity

  3. Liabilities and equity and bank balance

  4. Capital and Liabilities
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

When fresh capital is introduced into a business, the cash (an asset) increases and the owner's capital (equity) also increases to maintain the accounting equation: Assets = Liabilities + Equity.

Multiple choice book keeping and accountancy accounting equation and business transactions meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

Financial assets _________.

  1. directly contribute to the country's productive capacity

  2. indirectly to the country's productive capacity

  3. contribute to the country's productive capacity both directly and indirectly

  4. do not contribute to the country's productive capacity either directly or indirectly
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Financial assets, such as stocks and bonds, represent claims on future income and facilitate the flow of funds to productive sectors, thereby directly contributing to the country's productive capacity.

Multiple choice book keeping and accountancy accounting equation and business transactions meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

Capital gain of Rs. 75 lakh arising from transfer of long term capital assets will be exempt from tax if such capital gain is invested in the bonds redeemable after three years, issued by NHAI u/s 54EC of the Act.

  1. True

  2. False

  3. Cannot be said with certainty

  4. Is decided by the Assessing Officer
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Under Section 54EC of the Income Tax Act, capital gains from the transfer of long-term capital assets are exempt from tax if invested in specified bonds (such as NHAI or REC bonds) within the prescribed time limit, subject to the conditions of the Act.

Multiple choice book keeping and accountancy accounting equation and business transactions meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

"For the financial year ended as on March 31, 20XX the figures extracted from the balance sheet of Xerox Limited as under: Opening Stock Rs 29, 000; Purchases Rs 2, 42, 000; Sales Rs 3, 20, 000; Gross Profit 25% of Sales. Stock Turnover Ratio will be".

  1. 8 times

  2. 6 times

  3. 9 times

  4. 10 times
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Gross Profit = 25% of 3,20,000 = 80,000. Cost of Goods Sold (COGS) = Sales - Gross Profit = 3,20,000 - 80,000 = 2,40,000. Average Stock = (Opening Stock + Closing Stock) / 2. Assuming Closing Stock is not provided, we use the opening stock as a proxy or check the calculation: COGS / Average Stock = 2,40,000 / 30,000 (approx) = 8.

Multiple choice book keeping and accountancy accounting equation and business transactions meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

The liability of the shareholders of a public limited company is limited to the extent of ________________.

  1. Par value of the share

  2. Paid up value of the shares

  3. Market price of the shares

  4. Intrinsic value of the shares
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In a company limited by shares, the liability of each shareholder is restricted to the unpaid amount on the shares they hold, which is the paid-up value concept.

Multiple choice book keeping and accountancy accounting equation and business transactions meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

Left side of balance sheet states the ______________.

  1. appreciated earnings

  2. liabilities

  3. assets

  4. stocks earnings
Reveal answer Fill a bubble to check yourself
B Correct answer