Correct Answer:- Option-B
Question14:-Which among the following is not a modifying principle of accounting
A:-Materiality principle
B:-Objectivity principle
C:-Conservatism principle
D:-Consistency principle
Correct Answer:- Option-B

Question15:-With regard to the ascertainment of adjusted closing capital in single
entry system, which among the following option is correct

A:-Drawings and additional capital are added to closing capital
B:-Drawings deducted and additional capital added to closing capital
C:-Drawings added and additional capital deducted from closing capital
D:-Drawings and additional capital are deducted from closing capital
Correct Answer:- Option-C

Question16:-Which among the following statements are true about ledger
Statement | : Ledger is prepared on the basis of source documents.
Statement Il : Ledger serves the basis for the preparation of final accounts.

A:-Statement | is False and Statement II is True
B:-Statement | is True and Statement II is False
C:-Both Statements are True
D:-Both statements are false
Correct Answer:- Option-A
Question17:-Freight and insurance on a new machinery is a
A:-Deferred revenue expenditure
B:-Revenue expenditure
C:-Capital expenditure
D:-None of the above
Correct Answer:- Option-C

Question18:-Among the following choose the correct statements :

|. The power to forfeit shares must be expressly given in memorandum of
associated of company

Il. Board must pass a resolution for forfeiture of shares.

Ill. Profit prior to incorporation can be used to create capital reserve

A:-l and Il only

B:-I and III only

C:-Il and Ill only

0:-1, || ۱۷۱

Correct Answer:- Option-C