Accountancy : Company Accounts and Analysis of Financial Statements 2009 CBSE [ Delhi ] Set II
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Q1
Star sports club sells an old table tennis table (Book value Rs. 7,000) for Rs. 8,500. Show how the sale would be reflected in the Receipts and Payments Account.
Marks:1View AnswerAnswer:
Rs. 8,500 will be shown on the receipts side of Receipts and Payments a/c.
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Q2
Why is it that the Capital Account of a partner does not show a “Debit Balance” in spite of regular and consistent losses year after year?
Marks:1View AnswerAnswer:
Capitals are fixed and all adjustments are made through the current account.
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Q3
Why is a Sacrifice Ratio calculated?
Marks:1View AnswerAnswer:
Sacrificing ratio is calculated to divide the goodwill credited to outgoing partner’s.
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Q4
How is interest on drawings calculated, if the drawings are made at regular intervals, as on the last day of each month?
Marks:1View AnswerAnswer:
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Q5
Why would an investor prefer to invest partly in shares and partly in debentures of a company?
Marks:1View AnswerAnswer:
Investor could enjoy double benefit both of ownership rights and regular earnings.
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Q6
State why Cash flow Statement is not a substitute for Income statement?
Marks:1View AnswerAnswer:
Cash flow statement includes only cash transactions.
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Q7
When is interest received considered as financing activity?
Marks:1View AnswerAnswer:
No interest received can never be treated as financing activity.
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Q8
What will be the operating profit ratio, if operating ratio is 88.94%?
Marks:1View AnswerAnswer:
Operating profit ratio = 100% - 88.94% = 11.06%
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Q9
What is Hierarchy of Accounts?
Marks:1View AnswerAnswer:
Hierarchy of accounts allows users to access entire group of accounts in addition to individual accounts. Users that have access to an account in the hierarchy will automatically also have access to all lower level accounts.
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Q10
What is a file?
Marks:1View AnswerAnswer:
A file is a collection of related records. For instance, a file may contain the records of all the customers in a particular area.
