91. Which of the following equations correctly calculates the liquid assets?
(A) Current assets + (stock – prepaid expenses)
(B) Current assets – prepaid expenses
(C) Current assets – stock – Prepaid expenses
(D) Current assets + (stock + prepaid expenses)
Answer:
Explanation:
92. An account operated to ascertain the loss or gain at the death of a partner is called:
(A) Realization account
(B) Revaluation account
(C) Executors account
(D) Decreased partner’s A/c
Answer:
Explanation:
93. Loss on realization is distributed among partners:
(A) according to capital ratio
(B) according to profit sharing ratio
(C) as decided among them
(D) Equally
Answer:
Explanation:
94. In a firm John’s capital being Rs. 40,000 and Harry’s Rs. 60,000. Michael purchased john’s interest for Rs. 50,000, the amount of goodwill paid to John will be:
(A) Rs. 50,000
(B) Rs. 10,000
(C) Rs. 40,000
(D) Rs. 60,000
Answer:
Explanation:
95. Which of the following would not be revealed by a company’s statement of cash flows?
(A) Whether the company has paid a dividend during the year
(B) Whether the company has raised long-term funding during the year
(C) How the company has managed its working capital over the last financial year
(D) Whether the company has exceeded its overdraft limit during the year
Answer:
Explanation: