ROUND 2

If a trial balance totals do not agree, the difference must be entered in

• The Profit and Loss Account

• A Nominal Account

• The Capital Account

• A Suspense Account

Which is calculated by dividing shareholders fund by the total assets

• Gross profit

• Liquid ratio

• Proprietary ratio

• Debt ratio

Probability ratio is are…..

• Gross profit ratio

• Net profit ratio

• Dividend ratio

• All of these

Accounting summarizing means

• Preparation of trial balance

• Account

• Journal

• Voucher

Prepaid salary has

• Debit balance

• Negative balance

• Credit balance

• None of the above

Which one of the following is not correctly matched

• Company authorized capital

• Shares Face value

• Bonus shares: Market value

• Preference shares: Fixed dividend

The current ratio is 3:2 and the amount of current liabilities is ₹ 40,000. What is the amount of current assets

• ₹ 60,000

• ₹70,000

• ₹ 80,000

• ₹ 1,00,000

Which one of the following accounting conventions stipulates that contingent liabilities appear as a footnote in the balance sheet

• Materiality

• Consistency

• Disclosure

• Conservation

The books of accounts of a company should be preserved for a period of not less than_____

• 2 years

• 5 years

• 8 years

• 10 years

Cost of goods purchased for resale is an example of

• Capital expenditure

• Revenue expenditure

• Deferred revenue expenditure

• None of the above