Q. Depreciation is calculated on the asset purchased by company in
✅ Correct Answer: (C)
Post Incorporation Period
Financial Accounts MCQs and Notes
Q. Director's salary is divided between prior period and post incorporation period in
✅ Correct Answer: (D)
None of the above
Q. The profit earned from the date of purchase till incorporation is considered as
✅ Correct Answer: (B)
Capital Profit
Q. Profit of post-incorporation period is called
✅ Correct Answer: (A)
Revenue Profit
Q. Preliminary expenses are apportioned between two periods in
✅ Correct Answer: (D)
Post Inc. Period
Q. Salesmen's salary is divided between two periods in
✅ Correct Answer: (B)
Turnover ratio
Q. In piecemeal Distribution according to Surplus capital method, final deficit of each partner
✅ Correct Answer: (B)
Will be in ratio of profit and loss
Q. If there is Debit balance of any one partner's capital account the same will be distributed amongst the remaining partners
✅ Correct Answer: (B)
As per their Profit and Loss sharing ratio
Q. Before distributing cash amongst partners whatever profit or loss and reserves as per the balance sheet
✅ Correct Answer: (B)
Will be distributed amongst partners as per their P/L sharing ratio
Q. In order to find out additional capital of any partner as per surplus capital method of a particular partner whose proportional capital compared to other partner's capital is
✅ Correct Answer: (C)
Less