Q56. Journal is divided into_________ columns.
1) 3
2) 4
3) 5
4) 6
Q57. Book-keeping differs from accounting in the
following manner -----
1) they are based on different data
2) Book-keeping deals with recording of
transactions and accounting with compilation of accounts in
such a way that one is in a position to know the
state of affairs of a business.
3) Book-keeping is done by non-profit making
organizations and accounting by business organizations
4) Book-keeping is a function of a librarian and
accounting is a function of an accountant.
Q58. Quick ratio should generally be -----
1) 2:1
2) 1.5:1
3) 1:1
4) 3:1
Q59. Select the correct statement
1) Share premium amount can be distributed as
dividend amongst the shareholders
2) A company can issue shares at a discount in
its very first year of working
3) If calls on shares are not received, company
can forfeit these shares
4) Capital Redemption Reserve can be utilized for
payment of dividend
Q60. The method which assumes a higher
depreciation charge and greater tax
benefit in the early years of an asset’s life is
known as ----- method
1) Straight line
2) Declining balance
3) Double declining
4) Sum of the years digits
Answers:
