Accounting Questions and Answers for Competitive Exams set-2
|| Accounting Questions Answers for Competitive Exams|| Accounting Questions and Answers for HPSSC JOA Accounts Accountant Exams||
11. Profit on reissue of forfeited shares is transferred to
(a) Profit and loss A/C
(b) Capital reserve A/c
(c) Share capital A/C
(d) General reserve Alc
12. Consider the following items which appear under “Reserves and Surplus” of balance sheet of a company
I. Profit and loss Account
II. Capital Redemption Reserve
III, Share Premium
IV. Capital Reserve
The correct sequence of these items is
(a) IV, II, III, I
(b) IV, III, II, I
(c) I, II, III, IV
(d) II, IV, III, 1
13. The term current assets does not include
(a) Stock
(b) Cash
(c) Advance payment
(d) Furniture
14. Bonus share are issued by the companies because
(a) Surplus cash is available.
(b) There are heavy accumulated general reserves
(C) There is heavy competition from similar companies.
(d) They have high gross profit ratio.
15. Profit can be fraudulently inflated by
(a) Suppression of sales returns.
(b) Treating capital expenditure as revenue.
(c) Overestimation of liabilities,
(d) Omission of prepaid expenses.
16. The trial balance of a manufacturing concern at the close of its financial year showed the following revenue balances Rs.
Raw materials and stores consumed 2,00,000
Salaries and wages 50,000
Other manufacturing expenses 1,00,000
Sales 3,00,000
The closing stock at selling rates amounted to Rs. 80,000. The management wants to change the basis of valuation of closing stock from selling rates to cost or market price, whichever is lower. Besides the figures given above, no other data are available
The closing stock value is
(a) Rs. 83,674.30 (b) Rs. 75,933.50 (c) Rs. 73,684.22 (d) Rs. 64,385.40
17. What is the correct sequence in which the capital of a company is raised?
(a) Issued, Nominal, Subscribed, Called-up.
(b) Issued, Nominal, Calledup, Subscribed.
(c) Nominal, Issued, Called-up, Subscribed.
(d) Nominal, Issued, Subscribed, Called-up.
18. Secret reserves may result by
(a) Creating general reserve.
(b) Providing excessive depreciation.
(c) Over valuation of stocks,
(d) Under valuation of liabilities,
19. Which of the following is not a capital reserve?
(a) Profits prior to incorporation.
(b) Dividend equalisation reserve.
(c) Profit on sale of fixed assets.
(d) All of these
20. Which of the following is created by debiting the Profit and Loss Account?
(a) Provision
(b) Sinking fund for redemption of debentures
(c) Dividend equalisation fund
(d) All of these.
