The 'Revenue Recognition' under Ind AS 115 is based on: MCQ with Answer and Explanation
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Question #1
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S1: The Profit and Loss Appropriation Account is prepared by a company. S2: The Profit and Loss Appropriation Account is prepared by a partnership firm. Which statement(s) is/are correct?
Correct Answer: Option D
Explanation:
A company does not prepare a Profit and Loss Appropriation Account; it transfers profits to reserves and dividends via the Statement of Changes in Equity. Only a partnership firm prepares this account to distribute profits among partners. S1 is incorrect, S2 is correct.
A company does not prepare a Profit and Loss Appropriation Account; it transfers profits to reserves and dividends via the Statement of Changes in Equity. Only a partnership firm prepares this account to distribute profits among partners. S1 is incorrect, S2 is correct.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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S1: A Cash Book is a subsidiary book. S2: A Cash Book also acts as a ledger account. Which statement(s) is/are correct?
Correct Answer: Option D
Explanation:
The Cash Book is a subsidiary book (book of original entry) for cash transactions. It also serves as the Cash and Bank accounts in the ledger, eliminating the need to post them separately. Both statements are correct.
The Cash Book is a subsidiary book (book of original entry) for cash transactions. It also serves as the Cash and Bank accounts in the ledger, eliminating the need to post them separately. Both statements are correct.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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The maximum number of partners allowed in a partnership firm (as per Companies Act, 2013) is:
Correct Answer: Option D
Explanation:
As per Section 464 of Companies Act 2013, maximum number of partners can be 50, unless otherwise prescribed. The earlier limit of 20 for non-banking and 10 for banking has been raised to 50 for all firms.
As per Section 464 of Companies Act 2013, maximum number of partners can be 50, unless otherwise prescribed. The earlier limit of 20 for non-banking and 10 for banking has been raised to 50 for all firms.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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