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

Question 1

Lessor is the …………

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

Answer 1

Qwner

Question 2

Lessee is the…………

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

Answer 2

User

Question 3

What is minimum Rent?

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

Answer 3

Payment for use of land which is fixed

Question 4

Minimum Rent is also called

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

Question 5

Short working = …………………- Royalty Payable

A)Minimum rent
B)Capital
C)Cash
D)None

Question 6

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

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

Question 7

Royalty is a revenue expenditure to lessor

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

Question 8

minimum rent is also term as dead rent

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

Question 9

Royalty Account is ……

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

Question 10

Short working is ………….

A)Excess of minimum rent over the actual royalty
B)Excess of actual royalty over minimum rent
C)Excess of standard output over Actual output
D)None of the above

Question 11

Surplus is…………….

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 12

When the royalty are less than the minimum 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

Which of the following statement is false?

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 14

Which of the following statement is false

A)If a lessee leases a part of the leased property to another person , it is called sublease
B)Royalty receivable account is opened in the books of Lessor
C)Recoupable short working is a current assets
D)None of the above

Question 15

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

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

Question 16

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

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

Question 17

In case f recoupment of shortworking, the lessee:

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

Question 18

Shortworking means……

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

Question 19

Royalties are connected with the following types of business

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

Question 20

royalty is an agreement between the following person

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

Question 21

Dead rent is also called …………

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

Question 22

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

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 23

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

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

Question 24

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

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

Question 25

Shortworking not recouped is debited to P/L Account

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