Which of the following statement is considered as the accountant’s snapshot of firm’s accounting value as of a particular date?

Related Mcqs:

1. Value generally promises to pay at maturity date and a firm borrows is considered as bond’s__________?

   A. Bond value
   B. Per value
   C. State value
   D. Par value

2. Which of the following can be considered as the most important phase of accounting cycle and it is the primarily objective of financial accounting?

   A. Identifying transactions
   B. Preparing “T Accounts”
   C. Preparing financial statements
   D. Preparing trial balances

3. The accountant of Leo Ltd. recorded a payment by cheque to a creditor for supply of materials as 1,340.56. The bank recorded the cheque at its correct amount of 3,140.56. The Company has not passed any rectification entries and the error is not detected through the bank reconciliation. The impact of this error is

   A. The Trial Balance will not agree
   B. The balance of creditors is understated
   C. The purchases are understated
   D. The favorable bank balance as per Pass Book is less than the Bank balance as per Cash book

4. Average Accounting Return is a measure of accounting profit relative to:

   A. Book value
   B. Intrinsic value
   C. Cost
   D. Market value

5. The accounting process of gradually converting the unexpired cost of fixed assets into expenses over a series of accounting periods is_________?

   A. Depreciation
   B. Physical deterioration of the asset
   C. Decrease in market value of the asset
   D. Valuation of an asset at a point of time

6. A firm has paid out Rs. 150,000 as dividends from its net income of Rs. 250,000. What is the retention ratio for the firm?

   A. 12%
   B. 25%
   C. 40%
   D. 60%

7. A firm reports total liabilities of Rs. 300,000 and owner’s equity of Rs. 500,000. What would be the total worth of the firm’s assets?

   A. Rs. 300,000
   B. Rs. 500,000
   C. Rs. 800,000
   D. Rs. 1100,000

8. Which of the following set of ratios relates the market price of the firm’s common stock to selected financial statement items?

   A. Liquidity Ratios
   B. Leverage Ratios
   C. Profitability Ratios
   D. Market Value Ratios

9. The type of bonds in which there are many maturity dates and part of issue is paid off at every maturity date is considered as ___________?

   A. pledged bonds
   B. serial bonds
   C. series bonds
   D. parallel bonds

10. The type of bonds in which whole issues get mature on a single date is considered as ___________?

    A. term bonds
    B. under bonds
    C. collateral bonds
    D. trustworthy bonds