The 'Operating Cycle' concept is used to determine: MCQ with Answer and Explanation
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Question #1
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On retirement of a partner, if the retiring partner is paid his dues in instalments, the method used is:
Correct Answer: Option D
Explanation:
When dues are paid in instalments, piecemeal distribution (as per Garner vs Murray rule) is applied.
When dues are paid in instalments, piecemeal distribution (as per Garner vs Murray rule) is applied.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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When shares are forfeited, the Share Capital Account is debited by:
Correct Answer: Option B
Explanation:
Upon forfeiture, the share capital account must be reduced (debited) by the amount that was called up by the company until that date.
Upon forfeiture, the share capital account must be reduced (debited) by the amount that was called up by the company until that date.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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Grouping of similar items and arranging them in a specific order in the Balance Sheet is called:
Correct Answer: Option C
Explanation:
Marshalling is the arrangement of assets and liabilities in a defined sequence, typically by liquidity or permanence.
Marshalling is the arrangement of assets and liabilities in a defined sequence, typically by liquidity or permanence.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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