Explore topic-wise InterviewSolutions in .

This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.

2351.

Current Ratio is :

Answer»

SOLVENCY Ratio
Liquidity Ratio
Activity Ratio
Profitability Ratio

Answer :B
Discussion
2352.

(Current Investments). List five items that are included under Current Investments.

Answer»


Solution :(i) Investment in Equity Instruments,
(ii) Investment In Government or Trust Sccurities,
(iii) Investment in DEBENTURES or BONDS, and
(IV) Investment in MUTUAL Funds.
Discussion
2353.

Current Assets Rs. 5,00,000, Current Liabilities Rs. 1,00,000, Revenue from Operations Rs. 28,00,000. Working Capital turnover Ratio will be:

Answer»

7 TIMES
5.6 times
8 times
10 times

Answer :A
Discussion
2354.

Current Assets Rs. 4,00,000, Current Liabilities Rs. 2,00,000 and Inventory is Rs. 50,000. Liquid Ratio will be:

Answer»

`2:1`
`2.25:1`
`4:7`
`1.75:1`

ANSWER :D
Discussion
2355.

Current Assets Rs. 85,000, Inventory Rs. 22,000, Prepaid Expenses Rs. 3,000. Then liquid assets will be:

Answer»

RS. 63,000
Rs. 60,000
Rs. 82,000
Rs. 1,10,000

Answer :B
Discussion
2356.

Current assets of a company are Rs. 5,00,000. Current ratiois 2.5:1 and Liquid ratio is 1:1. Calculate the value of current liabilities, liquid assets and inventories.

Answer»
Discussion
2357.

Current Assets of a Company were Rs. 1,00,000 and its current ratio was 2:1. After this the company paid Rs. 25,000 to a trade payable. The current ratio after the payment will be:

Answer»

`5:1`
`2:1`
`3:1`
`4:1`

ANSWER :C
Discussion
2358.

Current Accounts of the Partners should be opened when the capitals are _____________. (ii) in the absence of an agreement, interest on partner 's loan shall be paid @ __________. (iii) In the absence of an agreement , partners shall _________ salaries.(iv)When there is no agreement among the partners, the profit or loss of the firm will be shared___________ by the partners.(v) __________ is an extension of Profit and Loss Account . (vi) Minimum number of persons required to start partnership business is__________ (vii) Number of partnerswhich should not exceed for partnership business is ____________. (viii) Salary or Commission to a partner is an ______________ out of profit.

Answer»


Solution :[(i) fixed ; (II) `6%`p.a.; (iii) not be paid ; (iv) equally ; (v) PROFIT and LOSS Appropriation Account ; (vi) TWO ; (vii) fifty ; (viii) appropriation.]
Discussion
2359.

Current assets include only those assets which are expected to be realised within …………

Answer»

3 months
6 months
1 year
2 years

Answer :C
Discussion
2360.

Current Assets are Rs.4,00,000, Inventories Rs. 2,00,000 , Working Capital Rs.2,40,000 Calculate Current Ratio

Answer»

`2.5 : 1`
`1:1`
`2 : 1`
`1: 2`

SOLUTION :`1:1`
Discussion
2361.

Current Assets do not include:

Answer»

PREPAID EXPENSES
Inventory
Goodwill
Bills RECEIVABLE

ANSWER :C
Discussion
2362.

Current Assets are Rs 4,00,000, Inventories Rs 2,00,000, Working Capital Rs 2,40,000, Calculate Current Ratio

Answer»

`2.5 : 1`
`1 : 1`
`2 : 1`
`1 : 2`

ANSWER :A
Discussion
2363.

Current Accounts of partners are maintaned if

Answer»

CAPITALS are FIXED
capitals are fluctuating
Both (a)and (B)
NONE of these

Solution :capitals are fixed
Discussion
2364.

Current Accounts of partners are maintained if

Answer»

CAPITALS are FIXED.
capitals are fluctuating.
Both (a) and (B)
NONE of these.

Solution :capitals are fixed.
Discussion
2365.

CurrentAccountof apartner

Answer»

willalwayshavea CREDIT BALANCE .
willalwayshavea debit balance .
may HAVEA debit balanceor acreditbalance
canneverhavea debit balance

SOLUTION :may havea debit balanceor acreditbalance
Discussion
2366.

Cross Roads Ltd. has to redeem 50,000, 8% Debentures of Rs 100 each on 30th June, 2019. It should have a balance of Rs 12,50,000 in Debenture Redemption Reserve. It decides to set aside amount to Debenture Redemption Reserve on 31st March, 2019 on which date it has following reserves: {:(,Rs,),("Capital Reserve","6,00,000",),("Dividend Equalisation Reserve","2,50,000",),("General Reserve","1,00,000",),("Surplus, i.e., Balance in Statement of Profit and Loss","3,00,000",):} How much further amount it needs to set aside to Debenture Redemption Reserve how much it can set aside out of the above reserves and surplus ?

Answer»

RS 12,50,000 and Rs 6,50,000
Rs 12,50,000 and Rs 4,00,000
Rs 12,50,000 and Rs 5,50,000
Rs 12,50,000 and Rs 12,50,000

Answer :A
Discussion
2367.

Cross Roads Ltd. Has to redeem 50,000 , 8% Debentures of Rs.100 eachon 30 th june , 2019, It should have a balance of Rs.12,50,000 in Debenture Redemption Reserve , It decides to set aside amount to Debenture Redemption Reserve on 31 st March , 2019 on which date it has following reserve:{:(, "Rs."),("Capital Reserve","6,00,000"),("Debenture Redemption Reserve","2,50,000"),("General Reserve","1,00,000"),("Surplus, i.e, Balance in Statement of Profit and Loss","3,00,000"):}How much further amount it needs to set aside to Debenture Redemption Reserve and how much it can set aside out of the above reserves and surplus?

Answer»

Rs.12,50, 000 and Rs.6,50,000
Rs. 12,50,000 and Rs.4,00,000.
Rs.12,50,000 and Rs.5,50,000.
Rs.12,50,000 and Rs.12,50,000.

Answer :a
Discussion
2368.

Credit side balance in Income & Expenditure Account reveals :

Answer»

(a) EXCESS of cash receipts over payments
(b) Excess of cash payments over receipts
(C) Excess of EXPENDITURE over income
(d) Excess of income over expenditure

ANSWER :D
Discussion
2369.

Credit revenue from operations Rs. 3,00,000. Trade ReceivablesTournover Ratio 5, Calculate Closing Debtors, if closing debtors are two times in comparison to Opening Debtors.

Answer»

RS. 40,000
Rs. 60,000
Rs. 80,000
Rs. 1,20,000

Answer :C
Discussion
2370.

Credit revenue from operationsRs. 6,00,000, Cash revenue from operations Rs. 1,50,000, Debtors Rs. 1,00,000, B/R Rs. 50,000. Average Collection Period will be :

Answer»

2 MONTHS
2.4 Months
3 Months
1.6 Months

Answer :C
Discussion
2371.

Credit revenue from operations Rs. 5,60,000, Debtors Rs. 70,000, B/R Rs. 10,000. Average Collection Period will be :

Answer»

52 Days
53 Days
45 Days
46 Days

Answer :B
Discussion
2372.

Credit revenue from operations Rs. 24,00,000, Trade Receivables Turnover Ratio 6 times, Opening Debtors Rs. 3,20,000. Closing Debtors will be:

Answer»

RS. 4,00,000
Rs. 4,80,000
Rs. 80,000
Rs. 7,20,000

Answer :B
Discussion
2373.

Credit Purchases Rs. 6,00,000, Trade Payables Turnover Ratio 5, Calculate closing creditors, if closing creditors are Rs. 10,000 less than opening creditors.

Answer»

RS. 1,15,000
Rs. 1,25,000
Rs. 1,30,000
Rs. 1,10,000

Answer :A
Discussion
2374.

Credit Purchases Rs. 12,00,000, Opening Creditors Rs. 2,00,000, Closing Creditors Rs. 1,00,000. Trade Payables Turnover Ratio will be :

Answer»

6 TIMES
4 times
8 times
12 times

Answer :C
Discussion
2375.

Credit purchase of stationery is Rs 64,000, which is 80% of total purchase, compute cash purchase of stationery

Answer»

RS 16,000
Rs 24,000
Rs 8,000
None of these

Answer :A
Discussion
2376.

Credit purchase of stationery is Rs. 64,000, which is 80% of total purchase, compute cash purchase of stationey .

Answer»

RS. 16,000
Rs. 24,000
Rs. 8,000
None of These.

Answer :a
Discussion
2377.

Credit Purchase Rs. 9,60,000, Cash Purchases Rs. 6,40,000, Creditors Rs. 2,40,000, Bills Payable Rs. 80,000. Average Payment Period will be:

Answer»

3 MONTHS
4 months
2.4 months
6 months

Answer :B
Discussion
2378.

Cost of revenue from operations Rs. 6,00,000, Inventory Turnover Ratio 5, Find out the value of opening inventory, if opening inventory is Rs. 8,000 less than the closing inventory.

Answer»

RS. 1,12,000
Rs. 1,16,000
Rs. 1,28,000
Rs. 1,24,000

Answer :B
Discussion
2379.

Court can order a firm to be dissolved when a partner becomes insane.

Answer»


ANSWER :A
Discussion
2380.

Courtcanmakean ordertodissolvethefirmwhen :

Answer»

Some partnerhasbecomefullymad
Partnershipdeedis fullyfollowed
CONTINUED futureprofitsare expected
Firmis RUNNING legal business

ANSWER :A
Discussion
2381.

Cost of Revenue from Operations =

Answer»

Revenue from OPERATIONS - Net Profit
Revenue from Operations - Gross Profit
Revenue from Operations - CLOSING Inventory
Purchases - Closing Inventory

ANSWER :B
Discussion
2382.

Convert the following statement of profit and loss into the comparative statement of profit and loss of BCR Co .Ltd:

Answer»

Solution :COMPARATIVE STATEMENT of profit and LOSS for the year ended March 31,2016 and 2017:
Discussion
2383.

Compute the value of goodwill on the basis of four years purchase of the average profits based on the last five years? The profits for the last five years were as follows:{:(,Rs.),(2013,40000),(2014,50000),(2015,60000),(2016,50000),(2017,60000):}

Answer»


SOLUTION :N/A
Discussion
2384.

Compute Cost of Materials Consumed from the following: Opening Inventory of Materials Rs 2,50,000, Materials Purchased Rs 20,00,000, and Closing Inventory of Materials Rs 3,00,000.

Answer»


Solution :Cost of Materials CONSUMED = OPENING INVENTORY of Materials + Purchases of Materials
- Closing Inventory of Materials
= RS 2,50,000 + Rs 20,00,000- Rs 3,00,000= Rs 19,50,000.
Discussion
2385.

Compute Cost of Materials Consumed from the following: Opening Inventory of Materials Rs 1,50,000, OpeningWork-in-Progress Rs 2,00,000, Materials Purchased Rs 15,00,000, Closing Inventory of Materials Rs 2,50,000 and Closing Inventory of Wrok-in-Progress Rs 1,50,000.

Answer»


Solution :COST of Materials CONSUMED = OPENING Inventory of Materials + Purchases of Materials
- CLOSING Inventory of Materials
= Rs 1,50,000 + 15,00,000 - Rs 2,50,000 = Rs 14,00,000.
Opening Inventory of Work-in PROGRESS, i.e., Rs 2,00,000 and Closing inventory of Work-in-Progress, i.e., Rs 1,50,000 will not be considered to compute Cost of Materials Consumed as these are considered to calculate Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade.
Discussion
2386.

Compute cost of Materials Consumed from the following: Opening Inventory of Materials Rs 7,50,000, Opening Inventory of Stock-in-Trade Rs 2,00,000, Meterials Purchased Rs 25,00,000, Purchases of Stock-in-Trade Rs 15,00,000, Closing Inventory of Meterials Rs 2,50,000 and Closing Inventory of Stock-in-Trade Rs 1,50,000.

Answer»


Solution :COST of Materials Consumed = Opening Inventory of Materials + Purchases of Materials
-CLOSING Inventory of Materials
= Rs 7,50,000 + Rs 25,00,000 - Rs 2,50,000 = Rs 30,00,000.
Opening Inventory of Stock-in-Trade, i.e., Rs 2,00,000, Purchases of Stock-in-Trade, i.e., Rs 15,00,000 and Closing Inventory of Stock-in-Trade, i.e., Rs 1,50,000 will not be CONSIDERED as these are not part of Cost of Materials Consumed.
Discussion
2387.

{:("Compute Cost of Materials Consumed from the following:", ₹),("Opening Inventory : Materials","5,50,000"),(": Finished Goods","2,50,000"),("Materials Purchased :","22,50,000"),("Closing Inventory : Materials","4,50,000"),(":Finished Goods","1,50,000"):}

Answer»


Solution :Cost of Materials CONSUMED = Opening INVENTORY of Materials + Purchases of
Materials - CLOSING Inventory of Materials
= RS 5,50,000 + Rs 22,50,000- Rs 4,50,000 = Rs 23,50,000.
Note: Opening Inventory of Finished Goods, i.e., Rs 2,50,000 and Closing Inventory of Finished Goods, i.e., Rs 1,50,000 will not be considered to COMPUTE Cost of Materials Consumed as these are considered to calculate Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade.
Discussion
2388.

Complete the missing (?) figures in the following Extract of Balance Sheet:

Answer»

SOLUTION :
Discussion
2389.

Complete the missing amounts in the following accounts:

Answer»

Solution :
Notes:
(1) Calculation of Missing Values of REVALUATION Account: They have been taken from the given Balance Shet of Reconstituted firm.
For EXAMPLE: DECREASE in value of MachineryRs 40,000 is taken for MACHINERY.
(2) Calculation of Opening Balances of X's Capital and Y's Capital: Following steps have been taken:
Step 2. Put the value of Revaluation from Revaluation Account.
Step 3. The amount ofRs 9,00,000 andRs 3,50,000 represent the Opening Balances of their Capitals, calculated as Balancing Figure.
3. Value of Bills Payable is calculated by taking the following steps:
Step 1. Take the figure of Provision for Doubtful Debts from Revaluation Account and deduct it from debtors on the Balance SHEET, then we get Net debtors.
Step 2. Find out total of Assets side of the Balance Sheet and put it as the total of Liabilities side.
Step 3. Calculate the figure of Bills Payable as the Balancing Figure.
Discussion
2390.

Complete the following Journal entries:

Answer»

Solution :
Working Note: GAIN on 15 reissued shares = Rs. 100/20 `XX` = Rs. 75.
Discussion
2391.

Complete the following Journal entries:

Answer»

SOLUTION :
Discussion
2392.

Complete the following Journal entries:

Answer»

SOLUTION :
No of DEBENTURES ISSUED `= ₹ 18,00,000 //₹ 90`
`=20,000.`
Discussion
2393.

Complete the following entries in the Journal:

Answer»

Solution :
NOTE: Number of Debenturesto be issued = RS 20,00,000/Rs. 100 = 20,000 DEBENTURES.
Discussion
2394.

Complete the following Accounts and Balance Sheet by filling the missing amounts:

Answer»

SOLUTION :
Discussion
2395.

Comparison of actual values of one period with those of another period for the same firm is

Answer»

INTER- FIRM COMPARISON.
INTRA- firm Comparison.
Pattern Comparison.
None of these.

Solution :Intra- firm Comparison.
Discussion
2396.

Comparison with the help of ratios is not possible if different firms follow different Accounting Policies. Comment.

Answer»

Solution :If different FIRMS follow different ACCOUNTING policies, such as valuation of stock, CHARGING of depreciation, ETC., then inter-firm comparison becomes irrelevant because the principles of accounting FOLLOWED are different.
Discussion
2397.

Comparison of actual values of one firm with those another firm belonging to the same industry is

Answer»

INTER- FIRM COMPARISON.
Intra- firm Comparison.
Pattern Comparison.
None of these.

Solution :Inter- firm Comparison.
Discussion
2398.

Comparative statements are the form of horizontal analysis.

Answer»


ANSWER :1
Discussion
2399.

Comparative statement of profit and loss for the years ended 31st march 2018 and 2019 From the above comparative statement of profit and loss for the year ended 31st march 2018 and 31st march 2019 compute gorss profit ratio.

Answer»

SOLUTION :
Discussion
2400.

Comparative statements are also known as:

Answer»

DYNAMIC analysis
Horizontal analysis
Vertical analysis
External analysis

Answer :B
Discussion