Double entry implies that

Under the direct write-off method of recognizing a bad debt expense. Which of the following statements is/are true?

A. The bad debt expense is not matched with the related sales
B. Revenue is overstated in the year of sales
C. It violates the matching principle of accounting
D. All of the above

Under the direct write off method of recognizing a bad debt expense, the alternative D. is the correct answer which the combination of the following statements A. The bad debt expense is not matched with the related sales because the expense is written off in the year of occurrence and it is not matching with the related sales. B. Revenue is overstated in the year of Sales as a result not making any provision for possible loss on account of non- recoverable account. C. It violates the matching principle of accounting as the expense of bad debt is not matched for the same period of income. Thus, D. is the correct answer.

BUSINESS paid rent amounting to $100″ which of the following specialized journals records this transaction?

A. Cash receipts journal
B. Cash payments journal
C. Sales journal
D. Purchase journal

Which of the following specialised journals will record “goods returned by the BUSINESS “?

A. Purchase journal
B. Sales journal
C. Purchases return journal
D. Sales return journal

he term 2/10-n/30 implies that ______ % discount will be given if the payment is made within days or full amount is receivable within 30 days?

A. 2,10
B. 10,2
C. 10,30
D. 3,15

A. General journal
B. Cash journal
C. Purchase journal
D. Purchase return journal
Purchases Return (Journal) Book
In this book, purchases returns of goods are recorded. Sometimes goods purchased are returned to the supplier for various reasons such as the goods are not of the required quality, or are defective, etc.
For every return, a debit note (in duplicate) is prepared and the original one is sent to the supplier for making necessary entries in his book. The supplier may also prepare a note, which is called the credit note. The source document for recording entries in the purchases return journal is generally a debit note.
A debit note will contain the name of the party (to whom the goods have been returned) details of the goods returned and the reason for returning the goods. Each debit note is serially numbered and dated.

Which of following best describes the increase in equity expands___________?

A. Business operations
B. cash outflows
C. Inflows of cash
D. Appropriation expenses