An association of cement manufacturers is an example of–
(A) Diagonal combination
(B) Vertical combination
(C) Horizontal combination
(D) Lateral combination
Answer: Horizontal combination
Which one of the following statements is correct ?
(A) Audit of an educational institution is compulsory if it is run by a charitable trust
(B) A club is treated as a commercial establishment
(C) The accounts of a charitable trust can be audited by any person who belongs to the accountancy profession
(D) Audit of a charitable trust is not compulsory under law
Answer: Audit of an educational institution is compulsory if it is run by a charitable trust
Accumulated profit is shown as a liability in the balance sheet. Which accounting concept is behind such a treatment?
A. Going concern
B. Business entity (Correct)
C. Accrual
D. Accounting period
Recording of capital contributed by the owner as liability ensures the adherence of principle of–
(A) Consistency
(B) Going concern
(C) Separate entity
(D) Materiality
Answer: Separate entity
Zero-sum game is also known as?
A. Right issue
B. Bonus issue (Correct)
C. Private placement
D. Preferential Allotment
Which act restricts the maximum number of partners in a partnership firm that carries banking business to 10 persons? (in India)
A. Partnership Act 1932
B. Banking Regulation Act 1949
C. Companies Act 1956 (Correct)
D. Income Tax Act 1961