- To value the property of the company
- To help people make decisions about resource allocation
- To show managers the results of their departments
- To show the value of shares in the company
- b
-
Financial Report / Statement represents the position of business.
2019
All Solved Past Papers 2019 are included in this section of ETEST Academy’s Website. All Solved MCQs of 2019 of All Departments. All Posts and All Testing Services are also included in this section.
Two companies X co and y co go into liquidation and a new co z is formed then it is known as————–
- External reconstruction
- Amalgamation
- Absorption
- None of these
- b
-
Amalgamation is a combination of two companies to form a new company.
Trading & Profit & loss account and balance sheet is prepared from:
- Cash book and bank book
- Trial balance
- Ledger balances, cash and bank balances
- Ledger balance
- b
-
Trading & Profit & Loss account provides information about profit and loss through different trading activities and also shows profit and loss for the specific period.
The ratio which shows the proportion of profits retained in the business out of the current year’s profits is__________
- Pay out ratio
- Retained earnings ratio
- Earnings per share
- Price earnings ratio
- b
-
Formula
RE= RE0-NI-D
(RE represents Retained Earnings, RE0 represents Beginning Retained Earnings, NI represents Net Income Profit / Loss, D represents Dividends)
The term organization means:
- Accomplishment of goals or objectives by all means
- Management of the business
- The process of assigning duties to individuals to achieve goals or objectives
- None of these
- a
The comparison of net profit with the sales of the same year is:
- Horizontal comparison
- Both B & C
- Vertical comparison
- None of these
- c
-
In Horizontal Comparison, Account Balances ratio are calculating in different time period.
The accounting system, in which accounting entries are made on the basis of amount having become due for payment or receipt, is known as?
- Accrual system of accounting
- Current accounting period
- Cash system of accounting
- None of the given options
- a
Test of control is not associated with:
- Effectiveness of control
- Existence of control
- Continuous of control
- Designing of control
- b
When bank statement shows a debit balance, it means?
- Overdraft balance as per cash book
- Unfavorable balance as per cash book
- Unfavorable balance as per bank book
- None of the above
- c
An equal increase in both current assets and current liabilities would:
- Increase current ratio
- No affect on current ratio
- Decreases current ratio
- None of these
- c