What is the value of net assets of the partnership business, if goodwill and total assets are Rs. 500,000 and Rs. 850,000 respectively and the market value of is Rs.1,300,000?

• A) Rs. 800,000
• B) Rs. 350,000
• C) Rs. 1,800,000
• D) Rs. 2,150,000

Which of the following is NOT an accounting concept?

• A) Matching
• B) Depreciation
• C) Going concern
• D) Prudence

Which of the following is TRUE about the changes due to issuance of bonus shares?

• A) Decrease in working capital
• B) Increase in reserves and surpluses
• C) Increase in working capital
• D) Decrease in reserves and surpluses

Which of the following business publishes the Financial Statements?

• A) Partnership
• B) Public Limited Company
• C) Trust
• D) Sole-Proprietorship

Which one of the following is "False" about the rights issue?

• A) The rights issue is a special form of shelf offering
• B) Existing shareholders have the privilege to buy a specified number of new shares from the firm at a specified price within a specified time.
• C) Shares are issued to the general public through market
• D) A company can opt for a rights issue to raise capital.

Revaluation of assets and liabilities will affect the net worth of:

• A) All partners
• B) New partners
• C) Retired partners
• D) Old partners

Which of the following component of the financial statement provide disclosure regarding the cash inflows:

• A) Statement of cash flows
• B) Cash book
• C) Cash account
• D) Notes to the accounts

What is the market value of the partnership business, if net asset and total assets are Rs. 1500,000 and Rs. 1700,000 respectively and the value of goodwill is Rs.1,100,000?

• A) Rs. 26,00,000
• B) Rs. 600,000
• C) Rs. 3,200,000
• D) Rs. 400,000

Which of the following is shown on the liability side of Balance Sheet?

• A) Discount on issue of shares
• B) Premium on issue of shares
• C) Goodwill
• D) Preliminary expenses

Which of the following component of the financial statement provide disclosures regarding the cash outflow:

• A) Cash account
• B) Notes to the accounts
• C) Cash book
• D) Statement of cash flows

Which of the following is related to the qualitative characteristics that make financial information useful?

• A) Understandability
• B) Comparability
• C) Both Understandability and Comparability
• D) Reliability and Relevancy

Market value of a business greater than the net assets is called:

• A) Valuation of business
• B) All of the given options
• C) Goodwill
• D) Net worth

Under which of the following assumptions, the Financial Statements are to be prepared?

• A) Accrual basis assumption only
• B) Future assumption
• C) Past assumption
• D) Accrual basis and Going concern assumptions

Which of the following appears in the debit side of Trial Balance of company account?

• A) Assets
• B) Revenues
• C) Liabilities
• D) Owners’ equity

If the value of whole business is Rs. 600,000 and Net assets or capital is Rs. 320,000. What is the value of Goodwill?

• A) Rs. 560,000
• B) Rs. 920,000
• C) Rs. 320,000
• D) Rs. 280,000

All of the following are examples of realized profit, EXCEPT:

• A) Profit from revaluation of land
• B) Profit from sale of machinery
• C) Profit from sale of office furniture
• D) Profit from sale of shares

Which of the following is/are the source/s for the issuance of bonus shares?

• A) Balance from profit and loss appropriation account
• B) Premium on issue of debentures account
• C) All of the given options
• D) Premium on issue of shares account

Which of the following formula is utilized to find the value of whole business by capitalization of actual profits?

• A) (Normal rate of return / Actual profit) x 100
• B) (Actual profit / normal rate of return) x 100
• C) (Actual profit / Capital) x 100
• D) (Normal profit /Actual profit) x 100

Capital redemption reserve is an example of:

• A) Retained profit
• B) Capital reserve
• C) General reserve
• D) Undistributable profit

ABC Company is a partnership firm has the excess of actual profit (average profit) over the normal profit of an entity, which goodwill calculation method describes it?

• A) Super profit method
• B) Straight line method
• C) Average profit method
• D) Declining balance method