Question : Which of the following statements is true?

Option 1: If the amount of interest accrued and due is not paid, it is known as Interest Accrued and Due or Interest Outstanding

Option 2: If the date of payment of interest and accounting date are different, Interest Accrued and Not Due Account is credited at the end of the year to maintain accounting records on accrual basis
 

Option 3: Interest Accrued or Outstanding (whether due or not) on Debentures is shown under the main head 'Current Liabilities' and sub-head 'Other Current Liabilities'

Option 4: All  of the above 

Question : Which of the following are the objectives and significance of the current ratio?

Option 1: Current ratio is used to assess the firm’s ability to meet its short-term liabilities on time. 

Option 2: According to accounting principles, a current ratio of 2:1 is supposed to be an ideal ratio. It means that the current assets of a business should, at least, be twice its current liabilities.

Option 3: The higher the ratio, the better it is, because the firm will be able to pay its current liabilities more easily.

Option 4: All of the above.

Question : Which of the following are the objectives and significance of the current ratio?

Option 1: Current ratio is used to assess the firm’s ability to meet its short-term liabilities on time. 

Option 2: According to accounting principles, a current ratio of 2:1 is supposed to be an ideal ratio. It means that the current assets of a business should, at least, be twice its current liabilities.

Option 3: The higher the ratio, the better it is, because the firm will be able to pay its current liabilities more easily.

Option 4: All of the above.

Question : The computerised accounting system refers to - 

Option 1: Printing of Balance sheet and Profit and loss accounts using computer

Option 2: Processing of accounting transaction through computer and produce reports and records

Option 3: Processing of accounting related data and priting reports

Option 4: None of the above

Question : What is/are the applications of computerised accounting systems?

Option 1: To maintain Accounting Record of large organisations is Possible

Option 2: Separate Payroll Accounting is Possible

Option 3: Automation of All Financial Accounts

Option 4: All of the above