InterviewSolution
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InterviewSolution
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.
| 301. |
When can a company forfeit the shares held by a shareholder? |
| Answer» SOLUTION :SHARES can be FORFEITED for the non-payment of CALL MONEY. | |
| 302. |
When can a Bank Reconciliation Statement be prepared? |
| Answer» SOLUTION :It can be PREPARED on any DAY of the ACCOUNTING PERIOD | |
| 303. |
When a new partner does not bring his share of goodwill incash , the amount is debited to |
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Answer» CASH A/c. |
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| 304. |
When a new partner brings his share of goodwill in cash , the amount is debited to |
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Answer» GOODWILL A/c |
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| 305. |
When a new partner does not bring his share of goodwill in cash, the amount is debited to |
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Answer» CASH A/c |
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| 306. |
When a new partner brings cash for goodwill the amount is credited to the |
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Answer» PREMIUM for GOODWILL ACCOUNT. |
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| 307. |
When a new partner brings his share of goodwill in cash, the amount is debited to |
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Answer» GOODWILL A/c |
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| 308. |
When A and B sharing profits and loses in the ratio of 3 : 2, admit C as a partner giving him 1/5th share of profits. This will be given by A and B |
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Answer» equally. |
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| 309. |
What will be the treatment of 'Subscription received in advance' during the current year in the Balance Sheet of a Not-for-Profit Organisation? |
| Answer» Solution :SUBSCRIPTION received in advance dueing the CURRENT YEAR is RECORDED on the liability sideof current year's Balance Sheet. | |
| 310. |
What will be the treatmentof ' subscription received in Advance ' during the current year in the Balance Sheet of a Not- for - Profit Organisation. |
| Answer» Solution :SUBSCRIPTION RECEIVED in advance during the current year is recorded on the liability side of current year's Balance Sheet. | |
| 311. |
What will be the treatment of Subscription received in Advance during thecurrent year in the Balance Sheet of Not-for-Profit Organisation ? |
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Answer» |
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| 312. |
What will be the operating profit ratio , if operating ratio is 88.94% |
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| 313. |
What will be the amount of Gross Profit, if revenue from operations are Rs. 6,00,000 and Gross Profit Ratio is 20% of revenue from operations? |
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Answer» RS. 1,50,000 |
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| 314. |
What will be the amount of Gross Profit, if revenue from operations are Rs. 6,00,000 and Gross Profit Ratio is 20% of cost? |
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Answer» RS. 1,50,000 |
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| 315. |
What treatment is made of accumulted profits and losses on the retirement of a partner ? |
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Answer» CREDITED to all partner's CAPITAL accounts in OLD RATIO. |
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| 316. |
What was the reason for Ms. Parul and Ms. Aruna to become partners in the business? |
| Answer» SOLUTION :Both of them had EXPERTISE in their respective FIELDS. Parul was a FASHION DESIGNER while Aruna was a marketingperson. | |
| 317. |
What maximum amount of discount can be allowed at the time of re-issue of forfeited shares when shares were originally issued at a premium ? |
| Answer» Solution :AMOUNT of DISCOUNT should not EXCEED the amount credited to Shares FORFEITED Account. | |
| 318. |
What rate of interest the company pays on Calls-in-Advance if ithas not prepared its own Articles of Association? |
| Answer» Solution :If a company does not have its own Articles of ASSOCIATION, provisions of 'Table F' of the Companies Act, 2013 APPLY and company has to pay interest @ 12% p.a. on Calls-in-Advance form the date of RECEIPT to the due date. | |
| 319. |
What journal entry will be recorded for writing off the goodwill already existing in Balance Sheet at the time of retirement of a partner? |
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Answer» Retiring Partner's Capital A/c `"" `Dr. |
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| 320. |
What journal entry will be recordedfor deceased partner's share in profit from the closure of last balance sheet till the date of his death? |
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Answer» Profit and LOSS A/c `""` Dr. |
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| 321. |
What Journal entry is passed when the firm pays realisation expenses on behalf of a partner who has to bear the expenses ? |
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| 322. |
What Journal entry is passed when a partner agrees to pay the realisation expenses on behalf of the firm ? |
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| 323. |
What Journal entry is passed when an asset is given to any of the firm's creditors towards partial payment of dues ? |
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| 324. |
What is Voucher? |
| Answer» Solution : A VOUCHER is a documentary EVIDENCE in SUPPORT of a BUSINESS TRANSACTION. | |
| 325. |
What is understood by Accounting Ratio? |
| Answer» SOLUTION :Accounting Ratio may be defined as a mathematical EXPRESSION of the RELATIONSHIP between two items or group of items shown in the Financial STATEMENTS. | |
| 326. |
What is Vertical Analysis? |
| Answer» Solution :VERTICAL Analysis is MADE to REVIEW and analyse the Financial Statements of one particular year only. This TYPE of analysis is ALSO alled Static Analysis. | |
| 327. |
What is 'Trade Payables'? |
| Answer» Solution :Trade PAYABLES is the amount PAYABLE against GOODS purchased and/or services taken in the normal COURSE of business. | |
| 328. |
What is 'Trade Receivables'? |
| Answer» Solution :TRADE Receivable is the amount receivable against sale of GOODS and/or services RENDERED in the normal course of busines, e.g., Sundry DEBTORS, Bills Receivable. | |
| 329. |
What is Total Assets to Debt Ratio? |
| Answer» SOLUTION :This ratio SHOWS the RELATIONSHIP between TOTAL assets and long-term debts. | |
| 330. |
What is the significance of Return on Total Assets Ratio? |
| Answer» SOLUTION :This ratio measures the PROFITABILITY of investments which reflects managerial efficiency.The higher the ratio the better is the PROFIT eaming CAPACITY of the COMPANY or vice versa. | |
| 331. |
What is the significance of calculating Current Ratio? |
| Answer» Solution : The objective of calculating CURRENT Ratio is to ASSESS the ability of the enterprise to meet its SHORT- term liabilities as they become DUE for payment. It is a ratio used to assess the short-term solvency of the enterprise. | |
| 332. |
What is the purpose of Operating Cycle ? |
| Answer» SOLUTION :The COMPANY calssifies its assets and liablites as CURRENT ASSET and Current Liabilites on the basis of Operating CYCLE. ? | |
| 333. |
What is the objective of computing Total assets to debt ratio? |
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| 334. |
what is the objecitve of computing operting profit ratio? |
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| 335. |
What is the Nature of 'Revaluation Account'? |
| Answer» SOLUTION :REVALUATION ACCOUNT is a NOMINAL account in NATURE. | |
| 336. |
What is the nature of Receipts and Payments Account? |
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Answer» |
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| 337. |
What is the net balance left in Share Forfeiture Account : |
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Answer» RS. 1,400 |
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| 338. |
What is thenature of Interest on Debentures? |
| Answer» Solution :Interest on Debentures is a charge against PROFIT. It is, therefore, PROVIDED EVEN if thecompany does not have profit or has inadequate profit. | |
| 339. |
What is the name given to that 'part of capital' of a company which is called up only on winding up? |
| Answer» SOLUTION :RESERVE CAPITAL. | |
| 340. |
What is the nature of Incomeand Expenditure Account ? |
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Answer» |
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| 341. |
What is the nature of Income and Expenditure Account? |
| Answer» SOLUTION :It is a NOMINAL ACCOUNT | |
| 342. |
What is the name give to the 'part of capital' of a company which is Called-up only on winding up ? |
| Answer» SOLUTION :RESERVE CAPITAL. | |
| 343. |
What is the minimum number of partners a firm should have? |
| Answer» SOLUTION :There should be at LEAST 2 PERSONS to from a PARTNERSHIP. | |
| 344. |
What is the maximum number of partners that a partnership firm can have? Name the Act that provides for the maximum number of partners in a partnership firm. Or A group of 40 people wants to from a partnership fiem. They want your advice regareding the maximum number of persons that can be there in a partnership firm and the name of the Act under whose provisions it is given. |
| Answer» Solution :The maximum number of partners in a firm can be 50 as PER SECTION 464 of the Companies ACT, 2013 read ALONG with Rule 10 of the Companies (Miscellaneous) Rules, 2014. | |
| 345. |
What is the mening opf investment for the purpose of return on investment ratio? |
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| 346. |
What is the meaning of 'Investment' for the purpose of 'Return on Investment' ratio? |
| Answer» Solution :Investment for the purpose of 'Return on Investment' MEANS it is TRADE investment and THUS, part of CAPITAL EMPLOYED. | |
| 347. |
What is the maximum amount of discount which may be allowed on reissue of shares? |
| Answer» SOLUTION :DISCOUNT ALLOWED on reissue of forfeited shares should not exceed the AMOUNT forfeited, i.e., amount credited to 'Forfeited Shares Account's at the time of forfeiture. | |
| 348. |
What is the main objective of setting Accounting Standards? |
| Answer» Solution : The main objective of SETTING Accounting Standards is to bring uniformity in accounting PRACTICES and to ensure transparency, CONSISTENCY and comparability. | |
| 349. |
What is the main advantage of Ratio analysis? |
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| 350. |
What is the income Received in Advance ? |
| Answer» Solution :Income Received in Advance MEANS incomes which has been received by the BUSINESS before it being EARNED by business . | |