Accounting Objective Questions and Answers

246. Trial Balance is prepared to check accuracy of

247. Discount for quick repayment of debt is normally referred to as

A. Trade discount

B. Prompt payment discount

C. Cash discount

D. Bulk discount

Discussion

248. Accounts receivable includes . . . . . . . .

249. An asset is purchased for Rs. 50,000 on which depreciation is charged according to straight line method. The useful life of asset is 10 years and its residual value is Rs. 10,000. The rate of depreciation will be

250. Liquid Ratio is calculated as follows:

A. $$\frac{{{\text{Total Assets}}}}{{{\text{Total Liabilities}}}}$$

B. $$\frac{{{\text{Current Assets}}}}{{{\text{Current Liabilities}}}}$$

C. $$\frac{{{\text{Liquid Assets}}}}{{{\text{Current Liabilities}}}}$$

D. $$\frac{{{\text{Current Liabilities}}}}{{{\text{Liquid Assets}}}}$$

Discussion

251. If Earnings-Price (E-P) ratio is 0.05 and Earnings Per Share (EPS) is Rs. 8 the market price of the share will be

252. Schedule 16 relates to . . . . . . . .

A. interest earned

B. interest expended

C. operating expenses

D. None of these

Discussion

Accounting MCQs