Statement of Affairs resembles a: MCQ with Answer and Explanation

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Statement of Affairs resembles a:

A. Cash Book

B. Profit & Loss Account

C. Trial Balance

D. Balance Sheet

Answer: Option D

Solution (By JKSSB Mock Tests)

A Statement of Affairs is a list of assets and liabilities, structured exactly like a Balance Sheet, used to estimate capital.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Practice More Accountancy and Book Keeping Questions

Question #1

Which of the following is NOT a type of budget?

A. Infinite Budget

B. Flexible Budget

C. Zero-Based Budget

D. Rolling Budget

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Correct Answer: Option A

Explanation:
Flexible, Zero-Based, and Rolling are recognized budgeting techniques. There is no such concept as an 'Infinite Budget'.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

A company issues 20,000 equity shares of ₹10 each at a premium of ₹2 per share. Total amount received on application if full amount called on application will be:

A. ₹2,00,000

B. ₹1,60,000

C. ₹2,40,000

D. ₹2,20,000

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Correct Answer: Option C

Explanation:
Issue price per share = ₹10 + ₹2 = ₹12. If whole amount called on application, total = 20,000 × 12 = ₹2,40,000.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

An amount paid for 'Goodwill' on purchase of a business is classified as:

A. Fictitious asset

B. Intangible asset

C. Current asset

D. Deferred revenue expenditure

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Correct Answer: Option B

Explanation:
Purchased goodwill is an intangible asset.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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