Reserves and Surplus

Q.

Reserves and surplus are shown on _____ side of balance sheet.

1. Liabilities

2. Assets

3. Either Assets or Liabilities side

4. None of these

Q.

Shareholders' Fund include

1. Surplus

2. Money received against share warrants

3. All of these

4. Capital Reserves

Q.

Select the most appropriate alternative from those given below. Debit balance of trading account means _________.

Q. Define Government Company.

Q. List any five items that are shown under Reserves and Surplus.

Q.

Preliminary expenses are to be written-off completely in the year in which such expenses are incurred. It is shown by deducting it from ...............

1. Calls in advance

2. Statement of profit & loss

3. General reserve

4. Debenture redemption reserve

Q.

Which reserve can be used for distribution of dividend among shareholders when profit is insufficient?

1. Capital reserve

2. General reserve

3. Debenture redemption reserve

4. None of these

Q.

_____ balance of statement of profit and loss shall be shown as a negative figure under ‘Surplus’ head.

1. Debit

2. Credit

3. Either Debit or Credit

4. None of these

Q.

Cost Of Capital For Bonds And Debentures Is Calculated On______

Q. reserve is the most flexible reserve.

1. General
2. Debenture
3. Capital
4. Dividend

Q.

The balance of “Reserve and Surplus” after adjusting negative balance of Surplus, if any, shall be shown under “Reserve and Surplus” . True or false.

1. True

2. False

3. Partially True
4. None of these

Q.

Describe the steps fox creating Sinking Fund for redemption of debentures.

Q.

A reserve specifically represented by earmarked investments shall be termed as ............

1. Capital

2. Fund

3. Specific reserve

4. None of these

Q.

What does reserve mean?

Q.

Define Government Company?

Q.

What is the purpose of marshalling assets?

Q. Assertion :Under the provisions of new Company Act 2013, a company may issue fully paid-up bonus shares out of its free reserves, security premium account and the capital redemption reserve account. Reason: According to the new provisions of Company Act, 2013, no issue of bonus shares shall be made by capitalising reserves created by the revaluation of assets.

1. Both Assertion and Reason are correct and Reason is the correct explanation for Assertion
2. Both Assertion and Reason are correct but Reason is not the correct explanation for Assertion
3. Assertion is correct but Reason is incorrect
4. Both Assertion and Reason are incorrect

Q. Accrued income is shown ___________ of balance sheet.

1. Asset
2. Liability
3. Added to asset
4. Added to liability

Q. Select the most appropriate answer the alternatives given below and rewrite the Sentences.

The capital in the beginning of the accounting year is ascertained by preparing_____________.
a) Receipts and Payment Account
b) Cash Account
c) Statement of Profit or loss
d) Opening Statement of Affairs

Q. Consider the following statements:
1. The bonus shares shall not be issued in lieu of dividend,
2. A company may issue fully paid up bonus shares to its members out of its 'Capital Redemption Reserve Account'
3. A company may not issue bonus shares out of its 'Securities Premium Account'
Which of the above statement/s is are not correct?

1. 1, 2, and 3
2. Only 1
3. Only 2
4. Only 3

Q. Income received in advance will be shown as ________.

1. Fixed liabilities
2. Current asset
3. Current liabilities
4. Fixed asset

Q.

What are the most important financial statements?

Q.

Reserves are the part of ............. of company other than share capital.

1. Capital

2. Profits

3. None of these

4. Investments

Q. Which of the following is known as a 'no profit-no loss' situation?

1. Initiating structure
2. Break-Even Point
3. Statistical control
4. None of the above

Q. Expenses which are paid in advance is termed as _____.

1. Prepaid expense
2. Outstanding expense
3. Unpaid expense
4. None of the above

Q.

In a Balance Sheet, Where Are the Liabilities Placed?

Q. Does the loan from an outsider have priority over the loan from a partner as to repayment?

Q.

What is the marshalling of assets and liabilities?

Q.

List the items which may be debited or credited in the capital accounts of the partners when:

(i) Capitals are fixed

(ii) Capitals are fluctuating

Q. why preliminary expenses are added to net profit in cash flow statement?