Accountancy : Company Accounts and Analysis of Financial Statements 2010 CBSE [ All India ] Set I
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Q1
Briefly explain the types of data processing.
Marks:1View AnswerAnswer:
The types of data processing are:
a) Batch Processing: A technique used for regular processing of large amounts of data.
b) Online Processing: Creates a delay between the occurrence of the transaction and the actual processing. -
Q2
Name two financial statements prepared by not-for-profit organisations.
Marks:1View AnswerAnswer:
1. Receipts and payments a/c
2. Income and expenditure a/c
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Q3
What is meant by partnership deed?
Marks:1View AnswerAnswer:
An agreement in writing among partners.
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Q4
Why reserves and surpluses are distributed at the time of reconstitution of partnership firm?
Marks:1View AnswerAnswer:
Reserves and surpluses are kept aside of profits belonging to old partners of earlier years, so they are distributed at the time of reconstitution.
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Q5
How does the factor “Efficiency of Management” affect the goodwill of a firm?
Marks:1View AnswerAnswer:
If the manager is capable and competent, the firm will earn high profits, which will increase the value of goodwill.
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Q6
What is capital reserve?
Marks:1View AnswerAnswer:
Any reserve which is created out of capital profits and not readily available for distribution as dividend among the shareholders.
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Q7
State one limitation of Financial Statement Analysis.
Marks:1View AnswerAnswer:
The information given is historical in nature and does not reflect the future.
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Q8
Under which type of activity will you classify ‘Proceeds from sale of building’ while preparing cash flow statement?
Marks:1View AnswerAnswer:
It will be classified under Investing Activity.
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Q9
‘Redemption of debentures’ would result in inflow, outflow or no flow of cash. Give your answer with reason.
Marks:1View AnswerAnswer:
It will result in outflow of cash as it will be shown as negative in financing activities.
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Q10
What is meant by computerised accounting system?
Marks:1View AnswerAnswer:
Computerised accounting system refers to a system that consists of human and computer resources for recording, processing and reporting the accounting events of an organisation.
