Preliminary expenses are generally classified in the balance sheet under: MCQ with Answer and Explanation

Preliminary expenses are generally classified in the balance sheet under:
A. Intangible Assets
B. Fixed Assets
C. Current Assets
D. Fictitious Assets / Unamortized expenditure
Answer: Option D
Solution (By JKSSB Mock Tests)
Preliminary expenses are fictitious assets representing past expenditures that haven't been completely written off to the P&L account.

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Practice More Accountancy and Book Keeping Questions

Question #1
Under the Companies Act 2013, the 'National Company Law Tribunal' (NCLT) has the power to approve schemes of amalgamation. Before approving, it must receive a report from:
A. The Registrar of Companies
B. The Securities and Exchange Board of India
C. The Official Liquidator or a person designated by the Central Government
D. The Reserve Bank of India

Correct Answer: Option C


Explanation:
Section 232 of the Companies Act requires the NCLT to receive a report from the Official Liquidator or a designated expert regarding the affairs of the company and whether the scheme prejudices the interests of members or creditors.

Question #2
The 'Tax Audit' under Section 44AB is required for a professional if gross receipts exceed:
A. ₹1 crore
B. ₹2 crore
C. ₹25 lakh
D. ₹50 lakh

Correct Answer: Option D


Explanation:
For professionals, tax audit threshold is gross receipts > ₹50 lakh.

Question #3
A company issued 10,000 shares of ₹10 each at par, payable ₹2 on application, ₹3 on allotment, ₹5 on call. A shareholder holding 500 shares failed to pay call money. Calls-in-arrears amount is:
A. ₹1,000
B. ₹2,500
C. ₹5,000
D. ₹1,500

Correct Answer: Option B


Explanation:
Call money unpaid = 500 shares * ₹5 = ₹2,500.