Every business transaction affects at least ________ accounts?
Every business transaction affects at least ________ accounts?
A. One
B. Two
C. Three
D. Infinite
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Depreciation decreases____________?
Depreciation decreases____________?
A. Liabilities
B. Cash
C. Bank
D. CapitalThe cost of obsolete inventory acquired several years ago, to be considered in a keep vs. disposal decision is an example of :
The cost of obsolete inventory acquired several years ago, to be considered in a keep vs. disposal decision is an example of :A. Uncontrollable cost
B. Sunk cost
C. Avoidable cost
D. Opportunity costUnder which of the following situations, is journal entry not passed in the books of the drawer?
Under which of the following situations, is journal entry not passed in the books of the drawer?A. When a discounted bill is honoured by the drawee on the due date
B. When a bill is sent to the bank for collection
C. When a bill is renewed at the request of the drawee
D. When a debtor accepts a bill drawn by the drawer
A. When a discounted bill is honoured by the drawee on the due date, A. no journal entry
is passed in the books of the drawer. The entry is passed at the time of discounting of the bill itself and no entry is required if the discounted bill is honoured on due date. Hence, A. is the correct answer. The other alternatives are incorrect because, when a bill is sent to the bank for collection B. a journal entry debiting bills sent to bank for collection and crediting Bills Receivable is passed. When a bill is renewed at the request of the drawee C. a journal entry is passed canceling the old bill and raising a new bill with interest. When a debtor accepts a bill drawn by the drawer D. when a debtor is converted to bills receivable and debtors balance is reduced and Bills Receivable account is increased to extent of the amount passing a journal entry to that effect. Thus, A. is the correct answerA company is currently operating at 80% capacity level. The production under normal capacity level is 1,50,000 units. The variable cost per unit is ` 14 and the total fixed costs are ` 8,00,000. If the company wants to earn a profit of ` 4,00,000, then the price of the product per unit should be
A company is currently operating at 80% capacity level. The production under normal capacity level is 1,50,000 units. The variable cost per unit is ` 14 and the total fixed costs are ` 8,00,000. If the company wants to earn a profit of ` 4,00,000, then the price of the product per unit should beA. 37.50
B. 38.25
C. 24.00
D. 35.00In the Bank reconciliation statement “Deposit in transit” is usually:
In the Bank reconciliation statement “Deposit in transit” is usually:A. Subtracted from bank balance
B. Added to bank balance
C. Added to Cash book balance
D. Subtracted from cash book balanceDebit note is the basis for recording a transaction in which of the following journals?
Debit note is the basis for recording a transaction in which of the following journals?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.