21. Cost of depreciation fund is the –
(A) Explicit cost
(B) Opportunity cost
(C) Average cost
(D) Equity cost
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22. Trading Account is a –
(A) Personal account
(B) Real account
(C) Nominal account
(D) None of the above
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23. Under annuity method the amount of depreciation is –
(A) Fixed for all years
(B) Increasing every year
(C) Decreasing every year
(D) Fluctuating from year to year
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24. If the shares are forfeited, the share capital account is debited by –
(A) Face value of shares
(B) Paid up value of share
(C) Called up value of share
(D) Issue price of share
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25. Which of these accounts show debit balance?
(A) Machinery account
(B) Sales account
(C) Capital account
(D) All of the above
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26. Which of the following is non-current asset?
(A) Stock
(B) Good will
(C) Prepaid rent
(D) Accounts receivable
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27. Copyright is an example of –
(A) Tangible assets
(B) Intangible assets
(C) Wasting assets
(D) Fictitious assets
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28. On dissolution of a firm, an amount realized from the unrecorded asset is credited to –
(A) Revaluation account
(B) Realization account
(C) Cash account
(D) Capital accounts
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29. A decrease in the provision for bad and doubtful debts results in –
(A) Increase in net profit
(B) Increase in equity
(C) Decrease in net profit
(D) Both A and B
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30. Which of the following concept shows difference between amount of receipt and right to receive an amount?
(A) Matching concept
(B) Going concern concept
(C) Accrual concept
(D) Realization concept
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31. Sacrificing ratio is calculated in the case of –
(A) Retirement of a partner
(B) Death of a partner
(C) Insolvency of partner
(D) Admission of a partner
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32. Only Personal and Real Accounts are shown in-
(A) Balance sheet
(B) Trading account
(C) Profit and Loss account
(D) Trial balance
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33. If the net profit earned during the year ₹80,000 and debtors have increased during the year by
₹15,000, the cash from operation will be
(A) ₹80,000
(B) ₹65,000
(C) ₹95,000
(D) ₹40.000
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34. A and B are partners sharing profits in the ratio of 2 : 3. They admit C for 2/4th share in business. The sacrificing ratio of A and B is –
(A) 3:1
(B) 1:4
(C) 2:3
(D) 1:1
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35. A person deposits LIC premium of ₹10,000 He can claim –
(A) Deduction U/S 80C
(B) Exemption U/S 10
(C) Both A and B
(D) None of the above
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36. Accounting Standards Board of India was established in which year?
(A) 1970
(B) 1972
(C) 1973
(D) 1977
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37. Preparation of Final Accounts falls in –
(A) Book keeping
(B) Accounting
(C) Auditing
(D) None of the above
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38. Which of the following does not come under the purview of book-keeping?
(A) Financial transactions
(B) Recording
(C) Posting
(D) Analysis and interpretation
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39. While deciding about the divisible profit which of the following facts must be considered?
(A) Current depreciation
(B) Arrear of depreciation
(C) Capital profits
(D) All of the above
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40. Destruction of vouchers by auditor is –
(A) Civil liability
(B) Criminal liability
(C) Other liability
(D) None of the above
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