Any gain on the sale of non-current assets should be _________ from the net profit and the loss must be _________to the net profit in determining fund from operation?

Related Mcqs:

1. A second hand car is purchased for 2,00,000 and sold at 1,40,000 after two years. If depreciation is charged @ 10% on SLM method, find the profit or loss on sale of the car?

   A. 20,000 Loss
   B. 20,000 Profit
   C. 10,000 Loss
   D. 10,000 Profit

2. A second hand car is purchased for 2,00,000 and sold at 1,40,000 after two years. If depreciation is charged @ 10% on written down value method, find the profit or loss on sale of the Second hand car?

   A. Loss of 20,000
   B. Loss of 22,000
   C. Loss of 11,000
   D. Profit of 11,000

3. The compensation paid by the borrower of fund to lender, from the borrower point of the cost of borrowing fund is called?

   A. Interest Rate
   B. Required rate of return
   C. Nominal interest rate
   D. All of the above

   Submitted by: Maneesh kumar

4. A sale of Rs. 50.000 to A was entered as a sale to B. This is an example of____________?

   A. Error of omission
   B. Error of commission
   C. Compensating error
   D. Error of principle

5. Profit on sale of old plant is:___________?

   A. In Trading A/c
   B. In Profit and Loss Appropriation A/c
   C. Profit and Loss A/c
   D. Being a non operating item ignored

6. If Cash=$1000 inventories=$4000 Debtors=$5000 fixed assets=? Capital+Liabilities=$15000 What is the Amount of total assets?

   A. $5000
   B. $10,000
   C. $15,000
   D. $20,000

7. Which of the following is not true with regard to preparation of Profit & Loss Account?

   A. Profit & Loss Account is prepared for a certain period and hence it is an interim statement
   B. Profit & Loss Account does not disclose the effect of non-financial items
   C. Net Profits are ascertained on the basis of current costs
   D. Net Profits as disclosed by P&L Account is not absolute

8. The Profit and Loss Account shows the:

   A. Financial results of the concern for a period
   B. Financial position of the concern on a particular date
   C. Financial results of the concern on a particular date
   D. Cost of goods sold during the period

9. Which of the following will not appear in Profit and Loss Account of a business?

   A. Drawings
   B. Bad debts
   C. Accrued expenses
   D. Reserve for discount on Sundry Creditors

10. Which of the following assets is/are to be valued at the lower of cost and net realizable value?

    A. Goodwill
    B. Inventories
    C. Investments
    D. Both B. and C. above.