Accounting

When shares are sold at less than the nominal value, it means they are issued at?

A. a premium B. a loss C. a discount D. par Correct Answer: Option C C. a discount

6 years ago

Which of the following is a capital reserve?

A. profit and loss account balance B. share premium C. gross profit D. share discount Correct Answer: Option B B.…

6 years ago

Which of the following ratios measure the ability of a firm to meet short-term obligations?

A. net profit margin B. quick asset ratio C. turnover D. creditors ratio Correct Answer: Option B B. quick asset…

6 years ago

The correct order of liquidity is?

A. stock, debtors, prepayments and cash B. cash, payments, debtors and stock C. stock, cash, debtors and payments D. debtors,…

6 years ago

When both debit and credit entries of a transaction are shown in the cash book, it is described as?

A. contra entry B. reversal entry C. double entry D. single entry Correct Answer: Option A A. contra entry

6 years ago

Books of account are opening by means of a?

A. purchases journal B. principal journal C. sales journal D. returns inward journal Correct Answer: Option B B. principal journal

6 years ago

Direct material + direct expenses is?

A. overhead B. prime cost C. total cost D. conversion cost Correct Answer: Option B B. prime cost

6 years ago

Which of the following statements is no correct?

A. profits increase capital B. losses reduce capital C. drawings reduce capital D. drawings increase capital Correct Answer: Option D…

6 years ago

Which of the following is not an accounting concept?

A. periodicity B. accuracy C. consistency D. objectively Correct Answer: Option B B. accuracy

6 years ago