ROUND 3

Authorized Capital is mentioned in________

• Memorandum of Association

• Agreement

• cash

• Sales

If it is required to maintain fixed capitals then the partners’ shares of profits must be

• Credited to capital accounts

• Debited to capital accounts

• Debited to partners’ current accounts

• Credited to partners’ current accounts

Economic life of an enterprise is split into the periodic interval as per ------- concept

• Matching

• Money measurement

• Periodicity

•  Accrual

Provision is provided for doubtful debts is based on the principle of 

• Going concern

• Objectivity

• Materiality

• Conservation

40,000 10% redeemable preference shares of ₹10 each are redeemed at premium of ₹10 each by issue of 20,000 equity share of ₹10 each at a premium of ₹10 each, the amount transferred to CRR account would be

• 1,80,000

• 2,00,000

• 2,20,000

• 2,40,000

X draws a bill on Y. X endorsed the bill to Z. Who is the Payee

• X

• Y

• Z

•  None of the above

A promissory note does not require

• Noting

• Discontinuing

• Acceptance

• Charging

Overhead cost is the total of ____________

• All indirect costs

• All direct costs

• Indirect and direct costs

• All specific costs

If earning per share of company is ₹5 and the price earning ratio of other similar companies is 4, then the market value of the share of the company would be

• 0.80

• 1.25

• 9

• 20

Profit is 25% on cost. Profit is on sales

• 33 1/3%

• 20%

• 30%

• 50%