Free Bachelor of Commerce: Financial Accounting Questions and Answers

Question 1

The first external liabilities to be paid in a piecemeal transfer of cash are ______

Accepted Answer

secured creditors

Answer

government dues

Answer

partners\ loans

Answer

preferential creditors

Question 2

When the cash available for competing liabilities of the same class is insufficient, pro-rata payment is applicable.

Accepted Answer

insufficient

Answer

paid to partners

Answer

reserved

Answer

adequate

Question 3

Consideration for purchases can be determined by...

Accepted Answer

net assets method

Answer

balance sheet method

Answer

book value method

Answer

market value method

Question 4

PQR & Co.'s operating company is taken over by ABC & Co. It is known as...

Accepted Answer

absorption

Answer

external reconstruction

Answer

pouncing

Answer

internal reconstruction

Question 5

A limited company's members are liable for...

Accepted Answer

limited

Answer

unlimited

Answer

restricted

Answer

as per the articles of association

Question 6

At year's end, foreign debts are listed on...

Accepted Answer

the balance sheet rate of exchange

Answer

agreed value

Answer

original value

Answer

fair value

Question 7

The ________ prescribes Accounting Standard 11 (AS 11).

Accepted Answer

institute of chartered accountants of india

Answer

the government of india

Answer

the companies\ act

Answer

international financial reporting standards

Question 8

Under the, a partnership firm is created.

Accepted Answer

indian partnership act 1932

Answer

the indian association act 1955

Answer

the association of persons act 1932

Answer

indian partnership act 1955

Question 9

The most partners who can be accepted into a firm as partners are...

Accepted Answer

20

Answer

25

Answer

30

Answer

40

Question 10

Indirectly, the number of partners is limited by ______ .

Accepted Answer

the companie\s act

Answer

the partnership act

Answer

the corporate associations act

Answer

the association of persons act