The main difference between a partnership and a company is: MCQ with Answer and Explanation
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Question #1
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S1: Revaluation Account is prepared to record changes in the values of assets and liabilities. S2: The profit or loss on revaluation is transferred to the old partners' capital accounts in their sacrificing ratio. Which statement(s) is/are correct?
Correct Answer: Option A
Explanation:
Revaluation Account records the changes in asset and liability values at the time of admission/retirement. The net profit or loss is distributed among the old partners in their old profit-sharing ratio (which is the sacrificing ratio for the retiring partner). Both are correct.
Revaluation Account records the changes in asset and liability values at the time of admission/retirement. The net profit or loss is distributed among the old partners in their old profit-sharing ratio (which is the sacrificing ratio for the retiring partner). Both are correct.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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The 'Penalty' for under-reporting of income is:
Correct Answer: Option A
Explanation:
Penalty for under-reporting is 50% of tax on under-reported income; for misreporting, 200%.
Penalty for under-reporting is 50% of tax on under-reported income; for misreporting, 200%.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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The 'Comptroller and Auditor General' (CAG) is appointed by:
Correct Answer: Option C
Explanation:
CAG is appointed by the President under Article 148.
CAG is appointed by the President under Article 148.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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