Which of the following statements are correct? 1. Analysis and interpretation of financial statements, is a function of accounting. 2. Profit and Loss account is prepared for ascertaining financial postition of a firm. 3. Goodwill is a wasting asset. 4. Balance Sheet is prepared for ascertaining financial position of a firm Select the correct answer

The final accounts of a manufacturing company generally include the following statements. Select the correct sequence in the which the statements are prepared
i. Balance sheet
ii. Manufacturing account
iii. Profit and loss account
iv. Trading account
v. Profit and loss appropriation account

A

i, ii, iii, iv, v

B

ii, iv, iii, v, i

C

v, ii, iv, iii, i

D

i, iv, iii, ii, v

Assertion (A): In preparing final accounts, if closing stock is given in the trial balance, it is shown only in the Balance Sheet.
Reason (R): Any item appearing in the trial balance is treated only at one place i.e. either in the trading and profit & loss a/c or in the balance sheet.
Now, select the correct answer:

A

Both (A) and (R) are true and (R) is the correct explanation of (A)

B

Both (A) and (R) are true, but (R) is not correct explanation of (A)

C

(A) is true but (R) is false

D

(A) is false but (R) is true

Given below are two statements, are labelled as Assertion (A) and other as Reason (R):
Assertion (A): The fixed assets in the balance sheet are required to be shown at cost less depreciation.
Reason (R): The balance sheet and profit and loss account disclose a true and fair view.
Choose the correct answer

A

Both (A) and (R) are true and (R) is correct explanation of (A)

B

Both (A) and (R) are true but (R) is not the correct explanation of (A)

C

(A) is true but (R) is false

D

(A) is false but (R) is true

Identify the true statement of the following.
1. Balance sheet is always prepared from the point of view of the business, but not from, that of the owners.
2. The financial relationship of the business to its owners is shown in the balance sheet.
3. Balance sheet is always related to a period of time.

A

Both 1 and 2

B

Both 2 and 3

C

Both 1 and 3

D

All of the above

A complete set of financial statements under Ind AS includes the following.
1. Balance sheet at the end of the period.
2. Statement of profit and loss for the period.
3. Statement of changes in equity for the period.
4. Statement of cash flow for the period.
5. Balance sheet at the beginning of the preceding period.
Which statements given above are correct?

A

1, 2 and 4

B

Both 3 and 5

C

2, 3 and 5

D

All of the above

What is the correct sequence of the following actions required for the preparation of financial accounts?
1. Trading account
2. Making adjusting entries
3. Balance sheet
4. Profit and Loss account
Select the correct answer:

A

4, 2, 1 and 3

B

2, 4, 3 and 1

C

2, 1, 4 and 3

D

4, 2, 3 and 1

Consider the following statements:
Statement (A): Balance sheet shows liquidity position of a business on a particular date.
Reason (R): Balance sheet is prepared on basis of actual transactions which are recorded in the books of accounts.
Give the correct answer:

A

A and R both are correct and R is correct explanation of A

B

A and R both are correct and R is not correct explanation of A

C

A is correct but R is wrong

D

A is wrong but R is correct

Consider the following statements.
1. Realisation account and revaluation account are the same.
2. While preparing cash account or bank account (dissolution), the debit and credit side are same.
3. Items appearing in the balance sheet are posted at one place only.
Which of the statements given above is/ are correct?

A

Only 1

B

Both 2 and 3

C

All of the above

D

None of the above

Which of the following is true?
i. Balance sheet is alway sprepared from the point of view of the business, but not from the point of view of the owners.
ii. The financial relationship of the business to its owners is shown in the balance sheet.
iii. Balance sheet is always related to a period of time.

A

i and ii

B

ii and iii

C

i and iii

D

i, ii and iii

Rashna Company collected the following data in its accounting records in 2014 : From the income statement : Depreciation expense Tk. 1,000 Loss on sale of equipment 3,000 From the comparative balance sheet : Beginning balance , equipment Tk. 12,500 Ending balance , equipment 8,000 Beginning balance , accumulated depreciation 2,000 Ending balance , accumulated depreciation 2,400 No new equipment was purchased during the year. The equipment was sold at the end of the year. What was the cash in -flow from the sale of equipment in 2014?

A

Tk, 3,900

B

Tk. 1,000

C

Tk. 900

D

Tk. 600