SYBCom. FA Semester III Important Objectives

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Financial Accounting SEM III

 

Important Objectives

 

 

1)         Liabilities due to outsiders are ______ liabilities.

a) Internal

b) External

c) Always preferential         

d) None of above

 

2)         Liabilities due to partners are ______ liabilities.

a) Internal

b) External

c) Always preferential         

d) None of above

 

3)         Government dues are ______ liabilities.                                                    

a) Internal

b) External

c) Preferential        

d) None of above

 

4)         Creditors not secured by assets are ______.

a) Internal

b) Unsecured

c) Preferential          

d) None of above

 

5)         Undistributed profit is distributed among the partners in their ______ ratio.

a) Profit sharing  

b) Capital  

c) Equal       

d) None of above

 

6)         On dissolution, a secured creditor could only partly recover his due out of the amounts realized from the concerned assets. The remaining amount is treated as  ______ creditors.

a) Internal

b) Unsecured

c) Preferential          

d) None of the above

 

7)         Income tax payable by a firm as on the date of dissolution is treated as ______ creditors.

a) Internal

b) Unsecured

c) Preferential        

d) None of the above

 

 

8)         Salaries and wages payable by a firm as on the date of dissolution is treated as ______creditors.

a) Internal

b) Unsecured

c) Preferential        

d) None of the above

 

9)         Bank loan obtained by hypothecation of machinery is treated as ______ creditors.

a) Internal

b) Secured

c) Preferential          

d) None of the above

 

10)      Provident fund contribution payable by a firm as on the date of dissolution is treated as  ______  creditors.

a) Internal

b) Unsecured

c) Preferential        

d) None of the above

 

11)      Fictitious assets are distributed among the partners in their ______

a) Profit sharing Ratio

b) Capital Ratio

c) Equal       

d) None of above

                                                                                                                                           

12)      External liabilities are liabilities due to ______

a) Partners               

b) Creditors            

c) Both

d) None of above

 

13)      Contingent liabilities are the liabilities which are ______

a) Contingent on happening of certain event in future

b) Fixed liabilities                

c) Current liabilities

d) None of above

 

14)      Preferential liabilities are ______

a) Payable to creditors                   

b) Payable to government    

c) Payable to partners

            d) None of above

 

15)      Partners loan is  ______

a) Internal liability              

b) External liability           

c) Secured liability

d) None of above

 

16)      Take over of liability by a partner is ______

a) Added to capital of a partner

b) Deducted from capital of a partner

c) Neglected

d) None of above

 

17)      General Reserve should be ______

a) Distributed in profit Sharing Ratio              

b) Distributed in capital ratio    

c) Not distributed among the partners

d) None of above

 

 

18)      Profit & Loss Account debit balance should be ______ 

a) Deducted from capitals                      

b) Added to Capitals

c) Transferred to Realisation Account

d) None of above

 

19)      The balance of the drawings account of a partner is transferred to his ______ Account under the fixed capital method.

a) Capital                 

b) Current

c) Cash

d) None of above

 

20)      When all adjustments regarding salary, commission, interest on capital etc. are made to capital accounts only, the method is known as ______ Capital Method.

a) Fluctuating                     

b) Fixed

c) Temporary

d) None of above

 

21)      The liability of the partners in a firm is ______                          

a) Unlimited            

b) Fixed

c) Limited

d) None of above

 

22)      Trade mark is an ______ assets.                                                            

a) Intangible            

b) Fixed

c) Tangible

d) None of above

 

23)      When partner’s capitals are fixed, interest on capitals is credited to ______ Accounts.

a) Current                

b) Capital

c) Temporary

d) None of above

 

24)      Indian Partnership Act is in force since  ______

a) 1932                     

b) 1962

c) 1920

d) 1922

 

25)      In absence of partnership deed interest on partner’s loan is _____ p.a.

a) 6%             

b) 5%

c) 19%

d) 22%

 

26)      AS _____ deals with amalgamations.

a) 14              

b) 5%

c) 19%

d) 22%

 

 

 

 

27)      Under Realisation Method, _____ Account is opened to implement amalgamation.

a) Realization                     

b) Capital

c) Cash

d) None of above

 

28)      Amount agreed to be paid by the new firm to old firm is called _____.

a) Purchase Consideration                    

b) Capital

c) Cash

d) None of above




 

29)      Profit on Realisation is _____ to Partners’ Capital Accounts.

a) Credited              

b) Debited

c) Shifted

d) None of above

 

30)      Loss on Realisation is _____ to Partners’ Capital Accounts.

a) Credited               

b) Debited

c) Shifted

d) None of above

 

31)      Assets and Liabilities are transferred to Realisation Account at _____.

a) Market values                 

b) Book values

c) Sale Values

d) None of above

 

32)      On amalgamation _____ of the vendor firm are transferred to  partners capital account.                                                                                     

a) Fixed Assets                    

b) Fictitious Assets

c) Current Assets

d) None of above

 

33)      On amalgamation Profit or Loss on the sale of firm is ascertained through _____.

a) Realization                     

b) Capital

c) Cash

d) None of above

 

34)      On amalgamation of firms, accumulated profits of old firms get distributed over old partners in _____.

a) Old PSR              

b) Capital Ratio

c) Equal Ratio

d) None of above

 

35)      When the asset of the firm is sold _____ Account is credited.

a) Realization                     

b) Capital

c) Cash

d) None of above

 

36)      Amalgamation is ______

a) Merger of businesses    

b) Dissolution of firms                    

c) Both

d) None of above

37)      Purchase consideration is the amount ______

a) Payable by new firm to old firm

b) Payable by old firms to partners

c) Payable by one firm to another firm

d) None of above

 

38)      Excess of credit over debit side of Realisation Account is ______

a) Profit on Realisation                

b) Loss on Realisation       

c) Surplus

d) None of above

 

39)      Liabilities assumed by partners are ______

a) Debited to Realisation Account     

b) Debited to Revaluation Account

c) Debited to Partners’ Capital Account

d) None of above

 

40)      Realisation expenses are ______

a) Debited to Bank Account

b) Debited to Realisation Account

c) Credited to Capital Account

d) None of above

 

41)      Take over of asset by a Partner is debited to ______

a) Realisation Account                  

b) Partners’ Capital Account        

c) Bank A/c

d) Cash A/c

 

42)      Excess of Net Assets over purchase Consideration is ______

a) Capital Reserve            

b) Goodwill                              

c) Capital

d) None of above

 

43)      On sale of forma company, the purchase consideration is calculated by ______

a) Lumpsum  method                                             

b) Payment method

c) Net Assets method                                             

d) Any of the above

 

44)      Shares or debentures received by a company on sale of a firm are distributed among the partners ______

a) In specific ratio agreed by all partners

b) Equitably

c) In ratio of capitals                                   

d) Any of the above

 

45)      In equitable approach ______

a) Equity shares are divided in profit sharing ratio

b) Preference shares and debentures are divided in ratio of capitals

c) Both (a)  & (b) 

d) None of (a) & (b)

 

46)      If purchase consideration is more than the net assets taken over, in the books of the company taking over the firm, the difference is ______

a) Debited to Goodwill A/c                                  

b) Credited to Capital Reserve

c) Debited to Security Premium               

d) None of the above

 

47)      Dissolution expenses paid by the company to the firm on conversion are ______

a) Debited to Deferred Revenue Expenditure A/c

b) Credited to Capital Reserve A/c

c) Debited to Goodwill A/c

d) None of the above

 

48)      On Conversion of a firm into Limited Company ______

a) A new company is formed                                

b) Old firm is dissolved

c) A new partner is admitted                                 

d) Both (a) & (b)

 

49)      If cash balance is taken over by a Limited Company  it is transferred to ______

a) Realisation A/c                                      

b) Revaluation A/c

c) P & L A/c                                                  

d) None of the above

 

50)      On take over of a unrecorded liability by a partner, __________ account will be debited

a) Realisation                                                         

b) Capital

c) P & L                                                                     

d) None of them

 

51)      Fictitious assets should be written off in their ______

a) Profit sharing Ratio                             

b) Capital Ratio

c) Final Claim Ratio                                    

d) None of them

 

52)      As per Net Asset Method, the Purchase Consideration will be ______

a) Gross Assets at Book Value

b) Net Assets at Book Value

c) Assets taken over at agreed value less liabilities taken over at agreed value

d) None of above

 

53)      On Conversion of firm into Limited Company ______

a) Purchase Consideration is decided                

b) Assets and liabilities are revalued

c) Purchase Consideration is settled

d) All of the above

 

54)      Purchase Consideration may be settled in ______

a) Cash Only

b) Share of Limited Company

c) Debentures of Limited Company

d) Cash/ Shares/ Debentures in Limited Company

 

55)      General Reserve will be distributed amongst the partners in the ratio of ______

a) Profit Sharing                            

b) Capitals

c) Final Claims                                            

d) None of above

 

56)      In case of conversion assets and liabilities are transferred to ______

a) Realisation                                                         

b) Capital

c) P & L                                                                     

d) None of them



 

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Comments

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