Question 1

Royalty Account is ……

Accepted Answer

A) Nominal account 
B) Real account 
C) Personal Account 
D) None of the above 
A) Nominal account 
B) Real account 
C) Personal Account 
D) None of the above A

Question 2

Royalty is a revenue expenditure to lessor

Accepted Answer

A) True 
B) False 
C) none 
D) all 
A) True 
B) False 
C) none 
D) all B

Question 3

Royalties is calculated either on the basis of ………………..

Accepted Answer

A) Production 
B) Sales 
C) Output 
D) Both A and B 
A) Production 
B) Sales 
C) Output 
D) Both A and B D

Question 4

What is minimum Rent?

Accepted Answer

A) Payment for use of land which is fixed 
B) Payment for the use of land on the basis of output 
C) A payment made to owner 
D) None of the above 
A) Payment for use of land which is fixed 
B) Payment for the use of land on the basis of output 
C) A payment made to owner 
D) None of the above

Question 5

royalty is an agreement between the following person

Accepted Answer

A) Seller and buyer 
B) Banker and customer 
C) Among all partners 
D) Lessor and lessee 
A) Seller and buyer 
B) Banker and customer 
C) Among all partners 
D) Lessor and lessee

Question 6

Shortworking can be recouped only out of ………………..

Accepted Answer

A) Surplus 
B) Loss 
C) Extra Income 
D) Taxes 
A) Surplus 
B) Loss 
C) Extra Income 
D) Taxes

Question 7

Surplus is…………….

Accepted Answer

A) Excess of minimum rent over the actual royalty 
B) Excess of actual royalty over minimum rent 
C) Excess of actual royalty over minimum rent. 
D) None of the above 
A) Excess of minimum rent over the actual royalty 
B) Excess of actual royalty over minimum rent 
C) Excess of actual royalty over minimum rent. 
D) None of the above

Question 8

Minimum Rent is also called

Accepted Answer

A) Dead Rent 
B) Rock Rent 
C) Fixed rent 
D) All of the above 
A) Dead Rent 
B) Rock Rent 
C) Fixed rent 
D) All of the above

Question 9

Shortworking means……

Accepted Answer

A) Excess of Minimum rent over royalty 
B) Excess of royalty over minimum rent 
C) None of the above 
D) all 
A) Excess of Minimum rent over royalty 
B) Excess of royalty over minimum rent 
C) None of the above 
D) all

Question 10

Dead rent is also called …………

Accepted Answer

A) Outstanding rent 
B) Minimum rent 
C) Prepaid rent 
D) All of the above 
A) Outstanding rent 
B) Minimum rent 
C) Prepaid rent 
D) All of the above

Question 11

The objectives od fixing dead rent is ………..

Accepted Answer

A) Landlord should not get more than a certain amount per year 
B) Landlord must receive a minimum amount in case of low output or sales 
C) Both A and B 
D) None of the above 
A) Landlord should not get more than a certain amount per year 
B) Landlord must receive a minimum amount in case of low output or sales 
C) Both A and B 
D) None of the above

Question 12

When the royalty are less than the minimum rent ?

Accepted Answer

A) Royalties account is debited with the actual amount of royalties earned 
B) Royalties account is debited with minimum rent 
C) Royalties account is debited with the amount paid to landlord 
D) Royalties account is debited with the excess of minimum rent over actual rent 
A) Royalties account is debited with the actual amount of royalties earned 
B) Royalties account is debited with minimum rent 
C) Royalties account is debited with the amount paid to landlord 
D) Royalties account is debited with the excess of minimum rent over actual rent

Question 13

Shortworking not recouped is debited to P/L Account

Accepted Answer

A) True 
B) False 
C) none 
D) all 
A) True 
B) False 
C) none 
D) all

Question 14

In the books of Lessee , short working recovered amount is debited to

Accepted Answer

A) Profit and loss account 
B) Minimum rent Account 
C) Royalty Account 
D) Landlord's Account 
A) Profit and loss account 
B) Minimum rent Account 
C) Royalty Account 
D) Landlord's Account

Question 15

Lessor is the …………

Accepted Answer

A) Qwner 
B) User 
C) None 
D) Both 
A) Qwner 
B) User 
C) None 
D) Both

Question 16

Which of the following statement is false?

Accepted Answer

A) Recoupable short working is a current assets 
B) Lapsed short working is a real account 
C) Short working is the part of minimum rent not represent by the use of right 
D) Both A and B 
A) Recoupable short working is a current assets 
B) Lapsed short working is a real account 
C) Short working is the part of minimum rent not represent by the use of right 
D) Both A and B

Question 17

If the royalty is less than minimum rent , the balance of royalty account at the end of theyear has to be transfer to

Accepted Answer

A) Capital reserve account. 
B) Reserve capita account 
C) Profit and loss account 
D) None of the above 
A) Capital reserve account. 
B) Reserve capita account 
C) Profit and loss account 
D) None of the above

Question 18

In case f recoupment of shortworking, the lessee:

Accepted Answer

A) Debits Shortworking Account 
B) Credit Profit and loss account 
C) Credit short working Account 
D) None of the above 
A) Debits Shortworking Account 
B) Credit Profit and loss account 
C) Credit short working Account 
D) None of the above

Question 19

Royalties are connected with the following types of business

Accepted Answer

A) Mining 
B) Construction 
C) Textile 
D) All of the above 
A) Mining 
B) Construction 
C) Textile 
D) All of the above

Question 20

The minimum rent can ……………………….be proportionately, if there is a stoppagedue to strike.

Accepted Answer

A) Increase 
B) Decrease 
C) No change 
D) all 
A) Increase 
B) Decrease 
C) No change 
D) all

Exam 7: Understanding the Concepts of Lessor, Lessee, and Minimum Rent

Royalty Account is ……

Royalty is a revenue expenditure to lessor

Royalties is calculated either on the basis of ………………..

What is minimum Rent?

royalty is an agreement between the following person

Shortworking can be recouped only out of ………………..

Surplus is…………….

Minimum Rent is also called

Shortworking means……

Dead rent is also called …………

The objectives od fixing dead rent is ………..

When the royalty are less than the minimum rent ?

Shortworking not recouped is debited to P/L Account

In the books of Lessee , short working recovered amount is debited to

Lessor is the …………

Which of the following statement is false?

If the royalty is less than minimum rent , the balance of royalty account at the end of theyear has to be transfer to

In case f recoupment of shortworking, the lessee:

Royalties are connected with the following types of business

The minimum rent can ……………………….be proportionately, if there is a stoppagedue to strike.

Exploring Features and Advantages of Computerized Accounting Systems

Exploring Computerized Accounting Systems and Software

Non-Profit Organizations and Financial Statements

Not-For-Profit Organizations and Financial Accounts

Goodwill and Intangible Assets

Valuation and Calculation of Goodwill

Royalty Accounting and Partnership Firms

Accounting

Accounting and Corporate Finance

Accounting and Finance

Depreciation, Share Capital, and Forfeiture of Shares

Financial Statements and Accounting Principles

Insurance Provision and Accounting Standards

Formation and Capital Structure of Public Companies

Share Forfeiture, Debentures, and Sinking Fund

Financial Accounting and Banking

Insurance and General Insurance Companies: Understanding Terms and Concepts

Single Entry System and Company Ownership

Share Capital and Shareholders in a Company

Debentures, Bonds, and Shares

Accounting Concepts and Principles

Accounting Concepts and Practices

Financial Statements and Accounting for Nonprofit Organizations

Hire Purchase, Sale of Goods, and Bookkeeping

Accounting and Bookkeeping

Allocation of Selling Expenses Among Departments Based on Sales

Accounting Concepts and Systems

Accounting and Financial Transactions

Ac Types, Balances, and Entries

Errors, Adjustments, and Expenditures in Accounting

Capitalization, Errors, Cash Book, and Types of Accounts

Revenue Recognition and Expenditure Classification

Depreciation and Asset Provision

Accounting Adjustments and Financial Statement Treatment

Balance Sheet and Profit Loss Account

Accounting and Financial Management

Bills of Exchange, Consignment, and Partnership

Accounting Standards and Joint Ventures

Accounting and Financial Management : Part A

Accounting and Financial Management : Part B

Accounting: Interest, Bill, Partnership Agreement,insurance, Contingent Liability, and Business Resources

Fundamentals of Accounting: Objectives, Concepts, and Principles

Depreciation and Reserves: Understanding the Accounting Concepts

Underwriting and Creditor Questions in Company Affairs

Amalgamation, Llp, and Single Entry System

Single Entry System and Profit Calculation

Accounting for Receipts, Payments, Income, and Expenditure in Consignment and Joint Venture Businesses

Accounting for Co-Venturers, Consignments, and Branches

Accounting Arrangements and Operations for Branches

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