A and B are partners sharing profits 3:2. C is admitted for 1/5th share, which he acquires equally from A and B. The new profit-sharing ratio is: MCQ with Answer and Explanation

A and B are partners sharing profits 3:2. C is admitted for 1/5th share, which he acquires equally from A and B. The new profit-sharing ratio is:

A. 9:6:5

B. 4:3:2

C. 5:3:2

D. 3:2:1

Answer: Option C

A's new share = 3/5 - 1/10 = 5/10, B's new = 2/5 - 1/10 = 3/10, C's = 2/10. Ratio 5:3:2.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1 Report Error

The 'Segment Reporting' (AS 17) applies to:

A. Only non-profit organisations

B. All entities

C. Only small companies

D. Listed companies and those in the process of listing

Correct Answer: Option D

Explanation:
AS 17 is mandatory for listed and soon-to-be-listed enterprises.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2 Report Error

The 'Advance Tax' is payable if tax liability exceeds:

A. ₹5,000

B. ₹1,000

C. ₹20,000

D. ₹10,000

Correct Answer: Option D

Explanation:
Advance tax is required to be paid if the net tax liability is ₹10,000 or more.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3 Report Error

Which of the following ratios is a measure of long-term solvency?

A. Current ratio

B. Quick ratio

C. Inventory turnover ratio

D. Debt-equity ratio

Correct Answer: Option D

Explanation:
Debt-equity ratio indicates financial leverage and long-term solvency.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping