MCQ for CA Intermediate ACCOUNTING - Chapter 5 - PROFIT OR LOSS PRE AND POST INCORPORATION

Sample Multiple Choice Questions (MCQ's) for CA Intermediate - Paper 1 - ACCOUNTING - Chapter 5: PROFIT OR LOSS PRE AND POST INCORPORATION - For Practice relevant for May/November 23 Examinations

 

Q1.   Profit prior to incorporation is transferred to

  1. General reserve.
  2. Capital reserve
  3. Profit and loss account.

Answer: 2

Q2.   The profit earned by the company from the date of purchase to the date of incorporation is

  1. Pre- incorporation profit.
  2. Post- incorporation profit.
  3. Notional profit.

Answer: 1

Q3.   Loss prior to incorporation is debited to which account?

  1. Goodwill account
  2. Loss prior to incorporation account
  3. Either (a) or (b)

Answer: 3

Q4.   Profit or loss prior to incorporation is of
  1. Revenue nature
  2. Capital nature.
  3. Nominal nature.

Answer: 2

Q5.  Which of the following expense is not allocated on time basis? 
  1. Rent
  2. Salaries
  3. Discounts

Answer: 1

 

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