Practice Test 66
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In the absence of any provision in the partnership agreement, profits and losses are shared:

  • Solution

    Profit and losses are shared equally unless otherwise agreed.

Which of the following statement is not true?

  • Solution

    If del-credere commission is allowed, bad debts will be borne by consignee and not debited to consignment A/c.

Account sale is sent by _____

  • Solution

    Account sale is sent by consignee to consignor.

Inventory is valued at cost or market value, whichever is less, is based on ______

  • Solution

    Inventory is valued at cost or market value, whichever is less, due to conservatism.

No Journal entry is required to be passed when there is ______

  • Solution

    No journal entry is required for normal loss.

Total of purchase return book is posted periodically to the credit of ______

  • Solution

    Total of purchase return book is posted to Cr. of Purchases Return A/c.

Salary Rs. 2000 payable to clerk is credited to _______

  • Solution

    Salary payable to clerk is credited to o/s salary A/c.

Cost of shifting of business to a more convenient locality is _____

  • Solution

    Cost of shifting is revenue expense.

Capital brought in by the proprietor is an example of _____

  • Solution

    Capital brought by proprietor is example of increase in asset and increase in liability.

Which of the following is not a sub-field of accounting?

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FUNDAMENTALS OF ACCOUNTING
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