Question : Which of the following are not the Characteristics of Statement of Profit and Loss (Profit and Loss Account)?

Option 1: It shows the financial performance of a company, i.e., revenues, expenses and Profit or loss for the period.

Option 2: It is prepared for a past period and thus, is a historical document.

Option 3: It is for a specific accounting period.

Option 4: None of the above

Question : Comprehension:

Read the following passage and answer the questions given after it.

Wetlands are amongst the most productive ecosystems on the Earth and provide many important services to human society. They exhibit enormous diversity according to their genesis, geographical location, water regime and chemistry, dominant species, and soil and sediment characteristics. Globally, the area extent of wetland ecosystems ranges from 917 million hectares (m ha) to more than 1275 m ha. One of the first widely used wetland classification systems, devised by Cowardin et al., 1979, categorised wetlands into marine (coastal wetlands), estuarine (including deltas, tidal marshes, and mangrove swamps), lacustrine (lakes), riverine (along rivers and streams), and palustrine ( marshes, swamps and bogs) based on their hydrological, ecological and geological characteristics.The 

The Ramsar Convention on Wetlands was an international treaty signed in 1971. Overall, 1052 sites in Europe; 289 sites in Asia; 359 sites in Africa; 175 sites in South America; 211 sites in North America; and 79 sites in the Oceania region have been identified as Ramsar sites or wetlands of International importance. As per the Ramsar Convention definition most of the natural water bodies (such as rivers, lakes, coastal lagoons, mangroves, peat land, coral reefs) and man-made wetlands (such as ponds, farm ponds, irrigated fields, sacred groves, salt pans, reservoirs, gravel pits, sewage farms and canals) in India constitute the wetland ecosystem distributed in different geographical regions ranging from Himalayas to Deccan plateau. As of February 2022, India has 49 Ramsar sites covering an area of 10,93,636 hectares, the highest in South Asia. As per the estimates, India has about 757.06 thousand wetlands with a total wetland area of 15.3 m ha, accounting for nearly 4.7% of the total geographical area of the country. Out of this, areas under inland wetlands account for 69%, coastal wetlands 27%, and other wetlands (smaller than 2.25 ha) 4%. Gujarat has the highest proportion (17.5%) and Mizoram has the lowest proportion (0.66%) of the area under wetlands. Among Union Territories, Lakshadweep has the highest proportion (around 96%) and Chandigarh has the lowest proportion (3%) of the geographical area under wetlands.

Question:

In India, what kind of wetlands occupy the largest area?

Option 1: coastal wetlands

Option 2: mangrove swamps

Option 3: inland wetlands

Option 4: small wetlands

Question : E, D and R are partners, sharing profits in the ratio of 2:2:1. D died on 30th June 2020 and profits for the accounting year 2019-20 were Rs. 36,000. The share of profit will be credited to Diya, for the period 1st April. 2020 to 30th June, 2020 is____________.

Option 1: Rs 3,000

Option 2: Rs 3,600

Option 3: Rs 2,600

Option 4: None of the above

Question : Which of the following are the objectives and significance of the current ratio?

Option 1: Current ratio is used to assess the firm’s ability to meet its short-term liabilities on time. 

Option 2: According to accounting principles, a current ratio of 2:1 is supposed to be an ideal ratio. It means that the current assets of a business should, at least, be twice its current liabilities.

Option 3: The higher the ratio, the better it is, because the firm will be able to pay its current liabilities more easily.

Option 4: All of the above.

Question : R, M and P were partners in a firm. P died on 29th February, 2020. His  share of profit from the closure of the last accounting year till the date of death was to be calculated on the basis of the average of three completed years of profits before death.  Profits for the years ended 31st March, 2017, 2018 and 2019 were Rs. 80,000, Rs. 90,000 and Rs. 1,00,000 respectively. 

Question:-
If profit-sharing ratio of remaining partners changes and new ratio being 3: 2. Then 

Option 1: Profit and loss suspense account debited by Rs 27,500

Option 2: Profit and loss suspense account credited by Rs 27,500

Option 3: Debited R’s capital account with RS 22,000 and M’s capital account Rs 5500 credited P’s capital account Rs 27,500

Option 4: None of the above

Question : In National income accounting, GVA stands for:

Option 1: general vesting added

Option 2: general visited account

Option 3: gross value accounting

Option 4: gross value added

Question : For making a trial balance it is not necessary to make a ________ in computerized accounting system -

Option 1: Ledger Accounts

Option 2: Jounral

Option 3: Capital account

Option 4: None of the above

Question : Which of the following are the objectives and significance of the current ratio?

Option 1: Current ratio is used to assess the firm’s ability to meet its short-term liabilities on time. 

Option 2: According to accounting principles, a current ratio of 2:1 is supposed to be an ideal ratio. It means that the current assets of a business should, at least, be twice its current liabilities.

Option 3: The higher the ratio, the better it is, because the firm will be able to pay its current liabilities more easily.

Option 4: All of the above.

Question : ---------------may be expressed as an arithmetical relationship between two accounting variables.

Option 1: Ratio 
 

Option 2: Accounting ratio

Option 3: Ratio Analysis

Option 4: None of the above 

Question : Common-size Balance Sheet shows the percentage relation of each asset/equity and liability…………

Option 1: One accounting period

Option 2: Two or more accounting period

Option 3: To the total of assets/total of equity and liabilities

Option 4: None of the above