NET, IAS, State-SET (KSET, WBSET, MPSET, etc.), GATE, CUET, Olympiads etc.: Commerce MCQs (Practice_Test 43 of 99)
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- Assertion (A) : Organization and methods is a conscious attempt to improve the quality of management and maintain efficient administrative machinery.
- Reason (R) : It involves detailed investigation with regard to the subject to be investigated, say procedures already being followed.
- Both A and R are true and R is the correct explanation of A
- Both A and R or true but R is NOT a correct explanation of A
- A is true but R is false
- A is false but R is true
- The fundamental accounting equation, Assets = Equities, is the formal expression of
- Dual aspect concept
- Matching concept
- going-concern concept
- money measurement concept
- A business is considered to be having and indefinite life according to
- Accounting period concept
- Cost concept
- Going concern concept
- Dual aspect concept
- Which of the following pairs are correctly matched?
- Match Item 1: Business entity
- Match Item 2: Accounting standard
- Match Item 1: Stock valuation
- Match Item 2: Consistency
- Match Item 1: Capital
- Match Item 2: Drawings
- Match Item 1: Going concern
- Match Item 2: Assumption
- Select the correct answer using the codes given below:
- Codes:
- 2,3 and 4
- 1,2 and 3
- 1,2 and 4
- 1,3 and 4
- Codes:
- Money-measurement concept of Accounting Theory is based on the assumption that the value of money will
- Remain constant
- Fluctuate
- Decreases
- go up
- match List I (Items of Expenditure and Receipt) with List II (Nature of Expenditure and Receipt) and select the correct answer using the codes given below the list:
Table Supporting: NET, IAS, State-SET (KSET, WBSET, MPSET, Etc.) , GATE, CUET, Olympiads Etc. : Commerce MCQs (Practice_Test 43 of 99) List-I List-II - Premium paid for a leasehold property
- Insurance premium paid for risks against accidental losses of properties (fixed assets)
- Amount realized from the sale of securities (investments) purchased earlier
- Huge sales promotion expense
- Revenue expenditure
- Capital receipt
- Deferred revenue expenditure
- Capital expenditure.
- A
- B
- C
- D
- 4
- 2
- 1
- 3
- 3
- 2
- 1
- 4
- 4
- 1
- 2
- 3
- 3
- 1
- 2
- 4
- Match List I (Items of Expenditure and Receipt) with List II (Nature of expenditure and receipt) and select the correct answer using the codes given below the lists:
Table Supporting: NET, IAS, State-SET (KSET, WBSET, MPSET, Etc.) , GATE, CUET, Olympiads Etc. : Commerce MCQs (Practice_Test 43 of 99) List-I List-II - Compensation paid to retrenched workers of the factory for the loss of service
- Legal expenses incurred in connection with the purchase of a plot of land
- Compensation received from the government for the compulsory removal of a business premises to another place
- Sale proceeds of merchandise (goods)
- Capital expenditure
- Capital receipt
- Revenue Expenditure
- Revenue receipt
- A
- B
- C
- D
- 1
- 3
- 4
- 2
- 1
- 3
- 2
- 4
- 3
- 1
- 4
- 2
- 3
- 1
- 2
- 4
- The cash price of a machine is ₹ 1,20, 000 and its hire purchase price is ₹ 1,50, 000 to be paid in five equal yearly installments. If a company purchases the machine on hire purchase basis, the amount of capital expenditure will be
- ₹ 1,20, 000
- ₹ 1,35, 000
- ₹ 1,50, 000
- ₹ 1,60, 000
- Which one of the following is a capital expenditure?
- Compensation paid to Directors on termination of their services
- Expenditure incurred in connection with the renewal of a Trade Mark
- Gratuities paid to employees on their retirement
- Royalty paid in installments for the purchase of rights to manufacture and sell patient medicines
- A private limited company earns a net profit of ₹ 2,00, 000 after tax during a certain financial period. Provision for taxation is ₹ 2,00, 000 and income from investment is ₹ 20,000 Capital employed during the same period is ₹ 10,00, 000 return on capital employed is
- 10%
- 20%
- 38%
- 42%
- After taking into consideration the noncash charges of ₹ 30,000 the operating loss of a company is ₹ 20,000. The fund generated from operations is
- ₹ 50,000
- ₹ 30,000
- ₹ 20,000
- ₹ 10,000
- If profit is one-fourth of selling price. The share of profit to cost will be
- If balance sheets on two different dates show machinery account at ₹ 1,85, 600 and ₹ 1,73, 800 respectively and the machinery and depreciated by ₹ 30,000 and one piece of machinery of book value of ₹ 5,000 had been sold in the beginning of the year for ₹ 3,100 then the application of fund is
- ₹ 6,800
- ₹ 11,800
- ₹ 14,900
- ₹ 23,200
- Given that M = opening stock, N = purchases, O = closing stock, P = cost of goods sold, The correct equation will be
- M-N = O + P
- M-O = P-P
- M-O = P-N
- P-M = N + O
- Messers. XXXX Ltd. provides the following information:
Net profit before income tax: ₹ 40,000
Depreciation charged during the year: ₹ 10,000
Goodwill written off during the year: ₹ 10,000
Income tax for the year: ₹ 20,000
Funds from operations will be
- ₹ 60,000
- ₹ 50,000
- ₹ 40,000
- ₹ 20,000