Head of Accounts
The profit on interest charged on the hire purchase should appear in the profit and the loss account in what manner?
Interest should instead be capitalized on the balance sheet
Interest should be apportioned in proportion to the repayment totals
The total interest levied should be divided equally over the total period the for purchase agreement
The interest charged in that period only should be included
The interest charged in that period only should be included
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Which of the following would not be included in a full set of company financial statements?A. The cash budget
B. The statement of financial position
C. The statement of changes in equity
D. The income statement
Partner ‘A’ took firm’s vehicle worth $5000 without payment at the time of firm’s disbanding. Identify the correct adjustment in the capital account of partner ‘A’?
A. $5000 will be debited
B. $5000 will be credited
C. No adjusted needed in capital a/c
D. None of these
Income and expenditure account is based on:
A. Cash accounting
B. Accrual accounting
C. Government accounting
D. Management accounting
Interest on drawings is:
A. Debited to partner’s current a/c
B. Credited to partner’s current a/c
C. Not shown in current account
D. None of these
The depreciation on an asset purchased through hire purchases should be:
A. Based on the cost price of the asset only
B. Should be straight line only
C. No depreciation should be provide until the final payment is made
D. Based on the total cost including interest
In which of the following types of partnership there is no agreement regarding the duration of partnership?
A. General partnership
B. Partnership-at-will
C. Limited partnership
D. Registered partnership
Under capitalization method of goodwill valuation, which of the following formulas is used to calculate the “value of whole business”?
A. Value of whole business = Profit / Reasonable rate of returns x 100
B. Value of whole business = Total assets / Reasonable rate of returns x 100
C. Value of whole business = Equity-Net asset
D. None of these
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