In financial statement analysis, the current ratio is calculated as: MCQ with Answer and Explanation
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Question #1
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Goods withdrawn by the owner for personal use should be credited to:
Correct Answer: Option C
Explanation:
When goods are withdrawn for personal use, the Purchases Account is credited to reduce the cost of goods available for sale, and Drawings is debited.
When goods are withdrawn for personal use, the Purchases Account is credited to reduce the cost of goods available for sale, and Drawings is debited.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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The 'Significant Economic Presence' (SEP) concept was introduced in India to:
Correct Answer: Option C
Explanation:
SEP deems a business connection if a non-resident has significant economic presence, even without physical presence.
SEP deems a business connection if a non-resident has significant economic presence, even without physical presence.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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Which principle states that an asset must be recorded at the price paid to acquire it?
Correct Answer: Option A
Explanation:
The historical cost principle requires that assets be recorded at their original purchase price, irrespective of changes in market value over time.
The historical cost principle requires that assets be recorded at their original purchase price, irrespective of changes in market value over time.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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