Home » MCQs » Financial Accounting Multiple Choice Questions#12

1) 

A company has distributable profit = $4, 90,000. Profit sharing share ratio of Mr. A, Mr. B and Mr. C is 2:3:5 respectively what will be the Profit share for Mr. C in distributable profit.


A)  $98,000
WRONG ANSWER

B)  $1, 47,000
WRONG ANSWER

C)  $2, 45,000
RIGHT ANSWER!!!

D)  $3, 43,000
WRONG ANSWER


2) 

the Capitals of partners are fixed then, at the end of financial year a partner’s drawings are transferred to the:


A)  Credit side of the partner’s capital account
WRONG ANSWER

B)  Credit side of the partner’s current account
WRONG ANSWER

C)  Debit side of partnership bank account
WRONG ANSWER

D)  Debit side of the partner’s current account
RIGHT ANSWER!!!


3) 

In which situation(s) Partnership is dissolved?

A)  In case of death of partner
WRONG ANSWER

B)  At the admission of new partner
WRONG ANSWER

C)  If any partner resigned from partnership
WRONG ANSWER

D)  All of the given options
RIGHT ANSWER!!!


4) 

In calculating earning per share (EPS), the net profit is divided by which of the following?


A)  Number of ordinary shares
RIGHT ANSWER!!!

B)  Number of preference shares
WRONG ANSWER

C)  Paid up capital
WRONG ANSWER

D)  Authorized capital
WRONG ANSWER


5) 

A firm may earn profit during an accounting period but have less money in the bank at the end of the period then it had at the beginning. Which of the followings, on its own, could explain this?

A)  Not paying invoices received from creditors
WRONG ANSWER

B)  The sale of fixed assets during the period
WRONG ANSWER

C)  an increase in trade debtors over the course of the period
RIGHT ANSWER!!!

D)  An increase in the depreciation charge relative to the previous accounting period
WRONG ANSWER


6)  Which of the following option(s) is TRUE about the Sales returns?

A)  Sales returns reduce the Gross sales of the firm
WRONG ANSWER

B)  Sales returns affect the Net income of the firm
WRONG ANSWER

C)  Sales returns affect the flow of cash
WRONG ANSWER

D)  All of the given options
RIGHT ANSWER!!!


7) 

The persons who sign articles and memorandum of the company and contribute in the initial share capital of the company are called:


A)  Subscribers RIGHT ANSWER!!!

B)  Shareholders WRONG ANSWER

C)  Managers WRONG ANSWER

D)  Directors WRONG ANSWER


8) 

The charter of a company which defines the limitations and powers of the company is called:

A)  The memorandum of association
RIGHT ANSWER!!!

B)  Articles of association
WRONG ANSWER

C)  Statutory report
WRONG ANSWER

D)  Certificate of commencement
WRONG ANSWER


9) 

Which of the following can offer its share to general public at large?

A)  A private limited company
WRONG ANSWER

B)  A listed company
RIGHT ANSWER!!!

C)  A partnership firm
WRONG ANSWER

D)  A trust
WRONG ANSWER


10) 

Which of the following are the owners of a company?

A)  Proprietors WRONG ANSWER

B)  Partners WRONG ANSWER

C)  Shareholders RIGHT ANSWER!!!

D)  Managers WRONG ANSWER



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