Bonus payable only on the maturity of the policy is termed as:
a. Cash bonus
b. Reversionary bonus
c. Interim bonus
d. Bonus is reduction of premium
Bonus payable only on the maturity of the policy is termed as: Read More »
Accounting
Identify which items are subtracted from the list amount and not recorded when computing purchase price:
a. Freight in
b. Trade discount
c. Purchase discount
d. Purchase return
Which of the ratio best reflects a company’s ability to meet immediate interest payment?
a. Debit ratio
b. Equity ratio
c. Times interest earned
d. None of these
At the time of admission of a new partner, goodwill raised should be written off in:
a. New profit sharing ratio
b. Old profit sharing ratio
c. Sacrificing ratio
d. Gaining ratio
At the time of admission of a new partner, goodwill raised should be written off in: Read More »
Income and expenditure account in a non trading institution records transaction of:
a. Revenue nature only
b. Capital nature only
c. Both (a) & (b)
d. Income of revenue nature and expenditure of revenue and capital nature
Income and expenditure account in a non trading institution records transaction of: Read More »
Comparison of a company’s financial condition and performance across time is a:
a. Ratio analysis
b. Horizontal analysis
c. Vertical analysis
d. None of these
Comparison of a company’s financial condition and performance across time is a: Read More »
Identify the correct answer with regards to depreciation expense
a. Is an application of the matching principle?
b. Is a closing entry?
c. Usually includes an offsetting credit either to cash or accounts payable.
d. Is not an adjusting entry?
Identify the correct answer with regards to depreciation expense Read More »
A transaction caused Rs. 20,000 decrease in both total assets and total liabilities. This transaction could have been:
a. Purchase of an asset for Rs. 20.000 cash
b. Asset costing Rs. 20,000 destroyed by fire
c. Repayment of Rs. 20,000 bank loan
d. Collection of Rs. 20,000account receivable
When costs are rising, which method reports higher net income:
a. LIFO
b. FIFO
c. Average
d. The most recent purchase price
When costs are rising, which method reports higher net income: Read More »