A-AS Level (CIE) Accounting Paper-1: Specimen Questions with Answers 28 - 29 of 93

Question 28

Question

MCQ▾

If a partner is entitled to a commission of 20 % on profits after deducting this commission, he will get a commission of ₹ on a profit of $ 180,000.

Choices

Choice (4)

a.

40000

b.

30000

c.

32000

d.

44200

Answer

b.

Explanation

Question 29

Question

Match List-Ⅰ List-Ⅱ▾

Match List I with List II and select the correct answer using the codes given below:

List-Ⅰ (Type of Assets)List-Ⅱ (Example of Assets)
(A)

Wasting Assets

(i)

Plant and ma machinery, building

(B)

Fictitious Assets

(ii)

Discount on shares or debentures, preliminary expenses

(C)

Fixed Assets

(iii)

Timberlands, mineral deposit its, oil (reserves)

(D)

Intangible Assets

(iv)

Goodwill, patents, trademarks etc.

Choices

Choice (4)
  • (A)
  • (B)
  • (C)
  • (D)

a.

  • (ii)
  • (i)
  • (iii)
  • (iv)

b.

  • (iii)
  • (ii)
  • (i)
  • (iv)

c.

  • (i)
  • (iii)
  • (iv)
  • (ii)

d.

  • (i)
  • (iv)
  • (ii)
  • (iii)

Answer

b.

Explanation

  • Fixed Assets:
  • Intangible assets: An intangible asset is an asset that does not have any physical existence. Like tangible asset you cannot touch or feel them but they have a current and future value.
  • Wasting assets: An asset that has a limited life and therefore dwindles in value over time is a wasting asset. This type of asset has a limited life by nature and depletes over a limited duration.
  • Fictitious Assets: Fictitious assets are those assets which do not have any realizable value; these are tangible/intangible in nature. The expenditure on these assets is incurred at the time of commencement of business and is written off from the earnings.

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