11. A and B are partners in a firm, sharing profits and losses in the ratio of 2:3. They admit C as a new partner, who is given a 1/4th share in the profits of the firm. A and B agree to sacrifice their share in the existing ratio. What will be the new profit-sharing ratio among A, B, and C?
a) 1:1:1
b) 2:3:4
c) 7:8:9
d) 6:9:5
Answer:
Explanation:
12. If the profit is 25% of the cost price then it is
a) 20% of the sale price.
b) 25% of the sale price.
c) 30% of the sale price.
d) 33% of the sale price.
Answer:
Explanation:
13. The financial statement that provides information about cash receipts and cash payments of a business is called:
a) Balance Sheet
b) Cash Flow Statement
c) Income Statement
d) Profit and Loss Statement
Answer:
Explanation:
14. If a firm earns an average profit of ₹80,000 per year and normal profit in the industry is ₹50,000, what will be the goodwill based on 3 years’ purchase of super profits?
a) ₹30,000
b) ₹60,000
c) ₹90,000
d) ₹1,50,000
Answer:
Explanation:
15. Quick ratio is a good indicator of the liquid position of a concern. The ideal quick ratio is
a) 1:1
b) 2:1
c) 3:1
d) 4:1
Answer:
Explanation: