Operating expenses include ____________

1. Administration and Selling Expenses

2. Selling and Distribution Expenses

3. Administration, Selling and Distribution Expenses

4. None of these

Proportion of share holder's funds to total assets is called

1. Proprietary ratio

2. Capital gearing ratio

3. Debt equity ratio

4. Current ratio

The minimum share Application money is _______________

1. 5% of the face value of shares

2. 10% of the issue price of shares

3. Rs.1 per share

4. 15% of the face value of shares

The profit remaining after issue of forfeited shares, in share forfeiture account will be transferred to ______________

1. Profit & Loss A/c

2. Share Capital A/c

3. General Reserves

4. Capital Reserve

Which one of the following statements is not true in relation to incomplete records?

1. It is an unscientific method of recording transactions

2. Records are maintained only for cash and personal accounts

3. It is suitable for all types of organisations

4. Tax authorities do not accept

A,B and C enter into a partnership investing Rs 35000, Rs 45000 and 55000. Find the their respective shares in annual profit of 40,500

1. 10500, 13500, 19500

2. 10500, 13500, 18500

3. 10500, 13500, 17500

4. 10500, 13500, 16500

A business is said is to be used _____________ system. It is not following the complete the principles of bookkeeping of ___________ system.

1. Double Entry - Single Entry

2. Single Entry - Double Entry

3. Double Entry - Double Entry

4. Single Entry - Single Entry

If the old profit sharing ratio is more than the new profit sharing ratio of a partner, the difference is called

1. Capital ratio

2. Sacrificing ratio

3. Gaining ratio

4. None of these

Legacy is a

1. Revenue expenditure

2. Capital expenditure

3. Revenue receipt

4. Capital receipt

Minimum number of members in case of public company is ________________

1. 4

2. 5

3. 6

4. 7

Profit after interest on drawings, interest on capital and remuneration is Rs.10,500. Geetha, a partner, is entitled to receive commission @ 5% on profits after charging such commission. Find out commission.

1. Rs.50

2. Rs.150

3. Rs.550

4. Rs.500

Undistributed loss will appear on the  side of the Balance sheet.

1. Assets

2. Liabilities

3. Both (a) & (b)

4. None of these

In single entry system profit is calculated as follows:

1. Opening capital + Drawings + Fresh Capital + Ending capital

2. Capital at the end - Drawings - Fresh capital - Opening capital

3. Capital at the end + Drawings - Fresh capital - Opening capital

4. None of the above

Calculate the amount of net income or loss if the capital has been increased by Rs.1,000 during this accounting period drawings Rs.5,000 and Rs.1,000 fresh capital was introduced in the business

1. Rs. 5,000 net loss

2. Rs.5,000 net profit

3. Rs.6,000 net loss

4. Rs.6,000 net profit

All the accounts are settled among partners and creditors at the time of ________ of a business

1. Dissolution

2. Retirement

3. Admission

4. None of these

James and Kamal are sharing profits and losses in the ratio of 5:3. They admit Sunil as a partner giving him 1/5 share of profits. Find out the sacrificing ratio.

1. 1:3

2. 3:1

3. 5:3

4. 3:5

The total capitalised value of a business is Rs.1,00,000; assets are Rs.1,50,000 and liabilities are Rs.80,000. The value of goodwill as per the capitalisation method will be

1. Rs.40,000

2. Rs.70,000

3. Rs.1,00,000

4. Rs.30,000

Which of the following statements is not true?

1. All the limitations of financial statements are applicable to financial statement analysis also.

2. Financial statement analysis is only the means and not an end.

3. Expert knowledge is not required in analysing the financial statements

4. Interpretation of the analysed data involves personal judgement

The partner admitted into partnership firm acquires two rights. i.e.,right to share in the _________ of the partnership and right to share in the _________.

1. Liabilities & Profit

2. Liabilities & Loss

3. Both (a) & (b)

4. Assets & Profits

Match List I with List II and select the correct answer using the codes given below:

List I	List II
(i) Current ratio	1. Liquidity
(ii) Net profit ratio	2. Efficiency
(iii) Debt-equity ratio	3. Long term solvency
(iv) Inventory turnover ratio	4. Profitability

1. (i)	(ii)	(iii)	(iv)
   1	2	3	4

2. (i)	(ii)	(iii)	(iv)
   1	4	3	2

3. (i)	(ii)	(iii)	(iv)
   3	2	4	1

4. (i)	(ii)	(iii)	(iv)
   4	3	2	1

At the time of admission of a new partner the firm is:

1. Dissolved

2. Continued

3. Not effected

4. Re-organized

Total sales is Rs.3,40,000 and the gross profit made is Rs.1,40,000. The cost of goods sold will be _________

1. Rs.2,00,000

2. Rs.4,80,000

3. Rs.3,40,000

4. Rs.2,10,000

Absolute liquid asset mean ________________

1. Cash, Bank, and Short term investments

2. Cash, Bank and Stock

3. Cash, Bank, Stock, and Prepaid Expenses

4. None of these

The profit or loss on revaluation of assets and liabilities is transferred to the capital account of

1. The old partners

2. The new partner

3. All the partners

4. The Sacrificing partne

Balance sheet provides information about the financial position of a business concern

1. Over a period of time

2. As on a particular date

3. For a period of time

4. For the accounting period

Which of the following is not a tool of financial statement analysis?

1. Trend analysis

2. Common size statement

3. Comparative statement

4. Standard costing

Which of the following statement is false?

1. Issued capital can never be more than the authorised capital

2. In case of under subscription, issued capital will be less than the subscribed capital

3. Reserve capital can be called at the time of winding up

4. Paid up capital is part of called up capital

If opening capital Rs. 1,000 and closing capital Rs. 2000. Assuming no drawings during the accounting period, calculated the net income or loss for the period

1. Rs.1,000 net income

2. Rs.1,000 net loss

3. Rs.2,000 net income

4. Rs.2,000 net loss

The mathematical expression that provides a measure of the relationship between two figures is called

1. Conclusion

2. Ratio

3. Model

4. Decision

Which one of the following is not correctly matched?

1. Liquid ratio – Proportion

2. Gross profit ratio – Percentage

3. Fixed assets turnover ratio – Percentage

4. Debt-equity ratio – Proportion

Single entry system keeps one cash book which which mixes up business as well as _______________ transactions

1. Private

2. Public

3. Own

4. All of these

At the time of retirement of a partner, determination of gaining ratio is required

1. To transfer revaluation profit or loss

2. To distribute accumulated profits and losses

3. To adjust goodwill

4. None of these

Which of the following equation(s) is (are) true

1. Assets = Liabilities + Capital

2. Assets - Capital = Liabilities

3. Both (a) & (b)

4. None of these

Excess of actual capital over proportionate capital

1. Surplus Capital

2. Deficit Capital

3. Share of profits

4. All of these

If adjusted closing capital is more than the opening capital, it denotes ____________

1. Profit

2. Loss

3. Opening Capital

4. Expenses

Donations received for a specific purpose is

1. Revenue receipt

2. Capital receipt

3. Revenue expenditure

4. Capital expenditure

In a common-size balance sheet, if the percentage of non-current assets is 75, what
would be the percentage of current assets?

1. 175

2. 125

3. 25

4. 100

Premium received on issue of shares are shown under the head of ________________ in balance sheet

1. Reserves & Surplus

2. Current liabilities

3. Share capital

4. Capital Reserves

Which of the following statement is true:

1. Authorized capital = Issued capital

2. Authorized capital> Issued capital

3. Paid up capital>Issued capital

4. None of these

Balance of receipts and payments account indicates the

1. Loss incurred during the period

2. Excess of income over expenditure of the period

3. Total cash payments during the period

4. Cash and bank balance as on the date

________ of partner will be paid off, before the settlement of partner’s capital.

1. Capital

2. Loan

3. Asset

4. None of these

Incomplete records are generally maintained by

1. A company

2. Government

3. Small sized sole trader business

4. Multinational enterprises

In single entry system, is not possible to prepare

1. Receipts and payments Account

2. Trial Balance

3. Balance Sheet

4. Account sales

The accounting procedure at the retirement of a partner involves:

1. As their old profit ratio

2. According to new ratio

3. According to sacrificing ratio

4. None of these

Function key F11 is used for

1. Company Features

2. Accounting vouchers

3. Company Configuration

4. None of these

The new profit sharing ratio will be determined by how the new partner acquires __________ from the old partner.

1. Liabilities

2. Assets

3. Share of profits

4. All of these

Cost of revenue from operations Rs. 3,00,000; Inventory in the beginning of the year Rs. 60,000; Inventory at the close of the year Rs. 40,000. Inventory turnover ratio is

1. 2 times

2. 3 times

3. 6 times

4. 8 times

) A partner who is newly admitted to the firm with the consent of all the parties is called

1. Salaries Partner

2. Incoming partner

3. Junior partner

4. Minor partner

Book profit of 2017 is Rs.35,000; non-recurring income included in the profit is Rs.1,000 and abnormal loss charged in the year 2017 was Rs.2,000, then the adjusted profit is

1. Rs.36,000

2. Rs.35,000

3. Rs.38,000

4. Rs.34,000

Partner’s equity is affected due to:

1. Retirement of a partner

2. Admission of a partner

3. Death of a partner

4. All of these

Securities premium account is shown on the liabilities side of the balance sheet under the head:

1. Share capital

2. Reserves and Surplus

3. Current liabilities

4. None of them

Total opening balances of assets and liabilities are Rs. 10,000 and Rs. 5,000 respectively. Find out the opening capital of the business

1. Rs 10,000

2. Rs 5,000

3. Rs 15,000

4. Rs 50,00,000

At the time of dissolution all the assets of firm are transferred to the realization A/c:

1. Market Value

2. Book Value

3. Cost Value

4. Bale Value

Goodwill of the firm is valued Rs.30,000. C an incoming partner purchase ¼ share of total profit Goodwill be raised in the books.

1. Rs.30,000

2. Rs.7,500

3. Rs.1,20,000

4. Rs.7,000

When capital in the beginning is Rs 10,000, drawings during the year is Rs.6,000, profit
made during the year is Rs2,000 and the additional capital introduced is ` 3,000, find out
the amount of capital at the end

1. 9,000

2. 11,000

3. 21,000

4. 3,000

If debtors balance was Rs. 2.000 at 1^st Jan.2017, credit sales made during the year were Rs.1,000 and Rs.1,500 were received from debtors, which of the following is the debtors account balance at 31^st Dec. 2017?

1. Rs.1,000

2. Rs 2,000

3. Rs 1,500

4. Rs 500

Partnership is _________ on the retirement or death of a partner

1. Dissolved

2. Agreed

3. Retired

4. None of these

Gross profit ratio established the relationship between

1. Gross profit & Total sales

2. Gross profit & Credit Sales

3. Gross profit & Cash sales

4. None of these

Turnover ratios are also known as ____________

1. Activity Ratios

2. Performance Ratios

3. Both (a) & (b)

4. None of these

The financial statements do not exhibit

1. Non-monetary data

2. Past data

3. Short term data

4. Long term data

Given Sales is 1, 20,000 and Gross Profit is 30,000, the gross profit ratio is

1. 24%

2. 25%

3. 40%

4. 44%

Value of goodwill will agreed upon Rs.30,000 on C. S admission and allowing him ¼ share of total profit Goodwill is brought is cash, the amount of goodwill will be as:

1. Rs.30,000

2. Rs.7,500

3. Rs.1,50,000

4. Rs.1,20,000

Generally, depreciation on fixed assets is calculated on which balance?

1. Opening Balance

2. Closing Balance

3. Only on additional

4. Amount realized on asset sole

Find the correct formula __________

1. Gaining Ratio = New Ratio + Old Ratio

2. Gaining Ratio = Old Ratio + New Ratio

3. Gaining Ratio = New Ratio - Old Ratio

4. Gaining Ratio = Old Ratio - New Ratio

When shares issued at premium which of the following account is credited?

1. Share premium A/c

2. Share first call A/c

3. Share allotment A/c

4. Share forfeited A/c

In the absence of an agreement among the partners, interest on capital is

1. Not allowed

2. Allowed at bank rate

3. Allowed @ 5% per annum

4. Allowed @ 6% per annum

Other name for registered capital is ____________

1. Issued Capital

2. Nominal Capital

3. Reserve capital

4. None of the above

Debt equity ratio is a measure of

1. Short term solvency

2. Long term solvency

3. Profitability

4. Efficiency

If the final amount due to a retiring partner is not paid immediately, it is transferred to

1. Bank A/c

2. Retiring partner’s capital A/c

3. Retiring partner’s loan A/c

4. Other partners’ capital A/c

In single entry two-fold aspects of transaction are not recorded, so it is

1. Complete & Scientific

2. Incomplete & Unscientific

3. Complete & Unscientific

4. Incomplete & Scientific