Practice Test 2
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The number of production or similar units expected to be obtained from the use of an asset by an enterprise is called as _________

  • Solution

    Number of units expected to be produced from the use of asset is called as useful life.

The accommodation bill is drawn_______

  • Solution

    Accommodation bill is dream when both parties are in need of funds.

The parties to joint venture is called_________

  • Solution

    Parties to joint venture are co-venturers.

The owner of the consignment inventory is________

  • Solution

    Consigner is the owner of the consignment inventory.

Interest on capital will be paid to the partners if provided for in the agreement but only from________

  • Solution

    Interest on capital will be paid only from profit of the year in the given case.

Profit or loss on revaluation is shared among the partners in _______ ratio.

  • Solution

    Profit/Loss on revaluation is shared among partners in old profit sharing ratio.

At the time of death of a partner, firm gets ________ from the insurance company against the Joint Life Policy taken jointly for all the partners

  • Solution

    Partners will get policy amount in the given case.

Dividends are usually paid as a percentage of ______

  • Solution

    Dividends are usually paid as percentage of paid up capital.

Loss on issue of debentures is treated as ____________

  • Solution

    Loss on issue of debentures is treated as other current/non-current assets.

Discount on issue of debentures is a __________

  • Solution

    Discount on issue of debenture is capital loss to be written off over tenure of debentures.

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FUNDAMENTALS OF ACCOUNTING
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