Securities Premium Account is shown on the liabilities side of the Balance Sheet under the heading: MCQ with Answer and Explanation

Question
Securities Premium Account is shown on the liabilities side of the Balance Sheet under the heading:
A. Current Liabilities
B. Share Capital
C. Reserves and Surplus
D. Long-term Provisions
Answer: Option C
Solution (By JKSSB Mock Tests)
Securities premium is a capital profit and is classified under 'Reserves and Surplus' in the balance sheet.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
The 'Merchandise Exports from India Scheme' (MEIS) has been replaced by:
A. Service Exports from India Scheme
B. Duty Drawback
C. Remission of Duties and Taxes on Exported Products (RoDTEP)
D. GST refund
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Correct Answer: Option C

Explanation:
RoDTEP replaced MEIS to ensure WTO compliance.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
'Benami Transactions' are prohibited under:
A. GST Act
B. Benami Transactions (Prohibition) Act, 1988
C. Income Tax Act
D. Companies Act
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Correct Answer: Option B

Explanation:
Benami property transactions are illegal under the Benami Act.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
Accounting data is considered 'Relevant' if it:
A. Can be verified by an auditor
B. Is presented in a standardized format
C. Is completely free from errors
D. Influences the economic decisions of users
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Correct Answer: Option D

Explanation:
Relevance is a qualitative characteristic implying the information has predictive or confirmatory value for decision-makers.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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