A debenture is a: MCQ with Answer and Explanation

A debenture is a:

A. Form of preference share

B. Instrument acknowledging a debt

C. Short-term asset

D. Document of ownership

Answer: Option B

A debenture is a written instrument issued under the common seal of the company acknowledging a long-term debt to the holders.

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

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Question #1 Report Error

Social Accounting primarily benefits:

A. Competitors

B. Shareholders only

C. Society at large by disclosing social costs and benefits

D. Government only

Correct Answer: Option C

Explanation:
It provides information to stakeholders about the social impact of an entity.

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

Question #2 Report Error

The fundamental accounting equation is a mathematical expression of which concept?

A. Going Concern Concept

B. Cost Concept

C. Dual Aspect Concept

D. Money Measurement Concept

Correct Answer: Option C

Explanation:
The Dual Aspect Concept states that every transaction has a two-fold effect, expressed as Assets = Liabilities + Capital.

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

Question #3 Report Error

Gross profit is transferred to:

A. Trading A/c

B. Balance Sheet

C. Capital A/c

D. Profit & Loss A/c (credit side)

Correct Answer: Option D

Explanation:
Gross profit from Trading A/c is transferred to the credit side of Profit & Loss A/c.

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