1) Assets purchased and payment being made by issue of Shares/Debentures. This transaction will be classified as in the Cash Flow Statement :
a) Operating Activities
b) Financing Activities
c) Investing Activities
d) None of these.
2) Which ratio is known as Acid-Test Ratio :
a) Current Ratio
b) Quick Ratio
c) Debt Equity Ratio
d) Price-to-Earnings Ratio
3) Income Tax paid by the proprietor Rs.10,000/-. The entry to be passed is :
a) Income Tax A/c …….Dr
To Bank A/c……Cr
b) Drawings A/c…………Dr
To Capital A/c…..Cr
c) Drawings A/c………..Dr
To Bank A/c…..Cr
d) Capital A/c……………Dr
To Profit/Loss A/c….Cr
4) Goods sent on Sale or Approval basis Rs.50,000/-. Out of this, Rs.20,000/- goods was only sold as on 31st March, 2013. The unsold goods lying with the party will be shown under :
a) Debtors A/c
b) Closing Stock
c) Sales A/c
d) None of the Above
5) ABC Co. Ltd purchased 1000 shares @ Rs.500/- each (Long-term investments). The market price of the share as on 31.03.2013 is Rs.650/- each. Which of the following is true for the given situation ?
a) Investments will be shown at Rs.6,50,000/- as on 31.03.2013
b) Profit/Loss account will be credited by Rs.1,50,000/-
c) Investments will be shown at Rs.5,00,000/- as on 31.03.2013
d) Unearned Income of Rs.1,50,000/- will be shown under Current Assets.
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