A deficit appears on the balance sheet:
(a) Among the assets
(b) As a deduction from total paid-up capital
(c) Among the liabilities
(d) None of these
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Accounting
One of the following is not an officer of a company:
(a) Share registrar
(b) Controller
(c) Secretary
(d) Treasurer
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Financial statements prepared by a business firm are most likely to be:
(a) Fully reliable
(b) Tentative in nature
(c) Relevant for all types of decisions
(d) Always misleading
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Which of the following is least important in determining the fair market value of a share?
(a) Earnings and dividends per share
(b) Book value per share
(c) The available supply of shares and the demand to purchase the shares.
(d) The par value of share.
If we add the average number of days to turn the inventory over and the average age of receivables (in number of days), we arrive at:
(a) The company’s fiscal period
(b) The sales volume of the business
(c) The company’s operating cycle
(d) Nothing meaningful
Which ratio indicates a firm’s ability to pay current liabilities in the shortest possible time?
(a) Current Ratio
(b) Equity Ratio
(c) Debt Ratio
(d) Quick Ratio
A transaction caused a Rs. 10,000 decrease in both assets and total liabilities. This transaction could have been:
(a) Purchase of furniture for Rs. 10,000
(b) An asset costing Rs.10,000 was destroyed by fire
(c) Repayment of bank loan Rs. 10,000
(d) Collection of a Rs.10,000 account receivable
Which of the following is not a use of working capital?
(a) Repayment of long term debt
(b) Cash dividend declared but not paid
(c) Payment of an account payable
(d) Acquisition of treasury stock.
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Under periodic inventory system cost of good sold is determined and recognized in the books of accounts:
(a) At the time of purchase of goods
(b) At the time of sale of goods
(c) At the end of the year
(d) None of these
Which of the following accounts are not closed at the end of an accounting period?
(a) Revenue accounts
(b) Expense accounts
(c) Drawing accounts
(d) Asset accounts
Which of the following accounts are not closed at the end of an accounting period? Read More »