Which accounting concept requires that the life of the business be divided into smaller intervals for performance measurement? MCQ with Answer and Explanation
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Question #1
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A trial balance is prepared to check:
Correct Answer: Option B
Explanation:
The primary purpose of a trial balance is to verify the arithmetical accuracy of the ledger by ensuring total debits equal total credits.
The primary purpose of a trial balance is to verify the arithmetical accuracy of the ledger by ensuring total debits equal total credits.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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Preliminary expenses are generally classified in the balance sheet under:
Correct Answer: Option A
Explanation:
Preliminary expenses are fictitious assets representing past expenditures that haven't been completely written off to the P&L account.
Preliminary expenses are fictitious assets representing past expenditures that haven't been completely written off to the P&L account.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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The 'Earnings Per Share' (EPS) as per AS 20 is computed as:
Correct Answer: Option A
Explanation:
Basic EPS = (Net profit - Preference dividend) / Weighted average equity shares.
Basic EPS = (Net profit - Preference dividend) / Weighted average equity shares.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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