Which of the following is a direct tax? MCQ with Answer and Explanation
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Question #1
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S1: Revaluation Account is a real account. S2: Revaluation Account is prepared to show the effect of revaluation on partners' capital. Which statement(s) is/are correct?
Correct Answer: Option D
Explanation:
Revaluation Account is a nominal account, not a real account, as it records expenses and incomes related to revaluation. Its purpose is indeed to show the net effect on partners' capital. S1 is incorrect, S2 is correct.
Revaluation Account is a nominal account, not a real account, as it records expenses and incomes related to revaluation. Its purpose is indeed to show the net effect on partners' capital. S1 is incorrect, S2 is correct.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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A 'Vote on Account' is:
Correct Answer: Option B
Explanation:
Vote on Account is a provision for meeting expenses for a short period before the full budget is passed.
Vote on Account is a provision for meeting expenses for a short period before the full budget is passed.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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Which ratio measures the firm's ability to meet its short-term obligations?
Correct Answer: Option B
Explanation:
Current Ratio (Current Assets / Current Liabilities) is a primary liquidity ratio testing short-term solvency.
Current Ratio (Current Assets / Current Liabilities) is a primary liquidity ratio testing short-term solvency.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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