Accounts - Principles of Accounts Questions
Question 1761:
In a bonus issue of one new share for every four held, a holder of 100,000 shares will get additional shares of
- A 50,000
- B 25,000
- C 20,000
- D 10,000
Question 1762:
A partner who has full power of participating in the conduct of a partnership business is a
- A General partner
- B Limited partner
- C Sleeping partner
- D Nominal partner
Question 1763:
The ratio which measures the solvency of a firm is the
- A Quick ratio
- B Gross profit over sales ratio
- C Stock turnover ratio
- D Debtors turnover ratio
Question 1764:
When goods are purchased on account, the accounting entries are
- A Debit purchases account, credit supplier's account
- B Credit purchases account, debit supplier's account
- C Credit bank account, debit purchases account
- D Debit bank account, debit purchases account
Question 1765:
Closing stock was overstated. The effect is that
- A Amount of goods available was understated
- B Cost of goods sold was overstated
- C Amount of sales was understated
- D Gross profit was overstated