16. When net sales for the year are Rs. 2,50,000 and debtors Rs. 50,000, the average collection period is
a) 42 days
b) 78 days
c) 69 days
d) 73 days
Answer:
Explanation:
17. If a share of Rs. 10 issued at a premium of Rs. 1, on which Rs. 9 (including premium) have been called and Rs. 7 (including premium) paid is forfeited the capital account should be debited by
a) Rs. 6
b) Rs. 7
c) Rs. 8
d) Rs. 9
Answer:
Explanation:
18. Goodwill of a firm owned by A and B is valued at Rs. 30,000 whereas the books value is Rs. 12,000. If C is admitted for 1/4 share, what amount he is supposed to bring for goodwill?
a) Rs. 3,000
b) Rs. 4,500
c) Rs. 7,500
d) Rs. 10,500
Answer:
Explanation:
19. Which of the following is classified as an investing activity in the cash flow statement?
a) Cash received from customers
b) Cash paid to suppliers
c) Issuance of common stock
d) Purchase of equipment
Answer:
Explanation:
20. Which of the following transactions will be reported under the operating activities section?
a) Sale of machinery
b) Payment of wages
c) Issuing of debentures
d) Purchase of land
Answer:
Explanation: