Practice Test

Q1) For computing pre-incorporation profits, Salary to vendor is Show Answer

Q2) For computing pre-incorporation profits, Salary to directors is Show Answer

Q3) For computing pre-incorporation profits, Interest on Debenture is Show Answer

Q4) For computing pre-incorporation profits, Fixed Expenses are Show Answer

Q5) For computing pre-incorporation profits, variable Expenses are Show Answer

Q6) For computing pre-incorporation profits, Insurance is Show Answer

Q7) For computing pre-Incorporation profits, Postage Show Answer

Q8) For computing pre-incorporation profits, Discount Allowed is Show Answer

Q9) For computing pre-Incorporation profits, Sale commission is Show Answer

Q10) For computing pre-incorporation profits, Appropriations by company is Show Answer

Q11) Profits prior to incorporation are available for Show Answer

Q12) Profits prior to incorporation should be transferred to Show Answer

Q13) Preliminary expenses written off should be charged to Show Answer

Q14) Interest to vendor is _____ expenditure Show Answer

Q15) Fees to directors is ______ expenditure Show Answer

Q16) Discount on debentures w/o is ___expenditure. Show Answer

Q17) Preliminary expenses w/o is ___ expenditure Show Answer

Q18) Share Transfer Fees received is ___ income. Show Answer

Q19) Gross Profits are divided, for computing pre-incorporation profits, in the ratio of _____. Show Answer

Q20) Printing is divided, for computing pre- incorporation profits, in the ratio of _____. Show Answer

Q21) Freight outward is divided, for computing pre-incorporation profits, in the ratio of _____. Show Answer

Q22) Audit fees are divided, for computing pre-incorporation profits in the ratio of _____. Show Answer

Q23) Rent is divided, for computing pre-incorporation profits, in the ratio of _____. Show Answer

Q24) Variable Expenses are divided, for computing pre-incorporation profits, in the ratio of ___. Show Answer

Q25) Salary to salesmen is divided, for computing pre-incorporation profits, in the ratio of ___ Show Answer

Q26) Advertisement is divided, for computing pre-Incorporation profits, in the ratio of ___. Show Answer

Q27) Depreciation is divided, for computing pre-incorporation profits, in the ratio of ____. Show Answer

Q28) Profits prior to incorporation are not available for dividend and must be transferred to capital reserve. Show Answer

Q29) For calculating the profit or loss prior to incorporation, date of commencement of business is the relevant date in the case of a public limited company. Show Answer

Q30) Preliminary expenses must be apportioned on time basis to the pre-incorporation and post-incorporation periods. Show Answer

Q31) The profit made on acquisition of business is credited to General reserve. Show Answer

Q32) For ascertaining pre-incorporation profits,administration expense is apportioned in the Sales Ratio. Show Answer

Q33) Profit after Incorporation is capital profit. Show Answer

Q34) If sales is not given, gross profit should be allocated in the equally. Show Answer

Q35) Time ratio is ratio of number of months before and after incorporation. Show Answer

Q36) Profit prior to incorporation is transferred to profit and loss a/c. Show Answer

Q37) Profit after incorporation is transferred to profit and loss a/c. Show Answer

Q38) Interest of vendor is allocated in the ratio of time. Show Answer

Q39) Preliminary expenses are allocated on the basis of sales. Show Answer

Q40) Advertisement expenses are allocated on the basis of sales ratio. Show Answer

Q41) Depreciation are allocated on the basis of time ratio. Show Answer

Q42) The date of obtaining Certificate to Commencement of Business is taken as the dividing point, for computing pre-incorporation profits, in case of public limited company. Show Answer

Q43) The accounting problem of ascertaining profits prior incorporation arises in the contact of business acquisition. Show Answer

Q44) Profits earned by a company prior to its incorporation cannot be considered to have been earned in the ordinary course of business. Show Answer

Q45) Profits prior to incorporation are available for distribution in the form of dividends. Show Answer

Q46) Profits prior to incorporation should be transferred to capital reserve Show Answer

Q47) Loss prior to incorporation is charged to profit and loss account. Show Answer

Q48) Loss prior to incorporation is debited to goodwill account. Show Answer

Q49) Profits prior to incorporation should be transferred to__________ Show Answer

Q50) Directors Renumeration should be divided into________ratio Show Answer

Q51) The expenses relating to the company should be allocated to_______period Show Answer

Q52) Profit post to incorporation is transferred to Show Answer

Q53) The share transfer fee received is related to______period Show Answer

Q54) The profit earned by the company from the date of purchase to thr date of incorporation is Show Answer

Q55) The excess of consideration paid over net value of assets taken over is called______ Show Answer

Q56) Loss of firm business before business taken over transferred to Show Answer

Q57) Profit earned next day of incorporation transferred to Show Answer

Q58) The profit or loss during post incorporation period is transferred to_______ Show Answer

Q59) Bad debt realised which is written off by the firm is shown under Show Answer

Q60) Purchased consideration Rs.30,000. Capital account Rs.20,000. The value of goodwill is_______ Show Answer

Q61) For computing pre-incorporation profits, salary to partner is Show Answer

Q62) For computing pre-incorporation profits, salary to directors is Show Answer

Q63) For computing pre-incorporation profits, Preliminary Expenses are Show Answer

Q64) For computing pre-incorporation profits, fixed expenses are Show Answer

Q65) The relevant date for segregation of income and expenses is date of_________ Show Answer

Q66) The expenses pertaining to vendor should be allocated to______period Show Answer

Q67) Profits prior to incorporation are available for Show Answer

Q68) The interest paid to vendor should be allocated in ratio of_________ Show Answer

Q69) Preliminary expenses written off should be charged to Show Answer

Q70) The excess of net assets over consideration paid is called________ Show Answer

Q71) If sales are uniform throughout the year,then sales ratio will be equal to time ratio Show Answer

Q72) For computing pre-incorporation profits, carriage on purchases is________ Show Answer

Q73) The monthly average turnover the first four months in 2010 was half the corresponding figure for remaining period Show Answer

Q74) For computing pre-incorporation profits, traveling expenses are allocated to______ Show Answer

Q75) The monthly average turnover during the first eight month of 2010 was twice the corresponding figure for the remaining period Show Answer

Q76) For computing pre-incorporation profits, depreciation is_______ Show Answer

Q77) For computing pre-incorporation profits, income tax is_______ Show Answer

Q78) For computing pre-incorporation profits, sales commission is Show Answer

Q79) For computing pre-incorporation profits, discount on debenture is________ Show Answer