An increase in provision for bad debt will____________?
An increase in provision for bad debt will____________?
A. Decrease net income
B. Decrease liabilities
C. Increase net income
D. Increase liabilities
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Which of the following statement is considered as the accountant’s snapshot of firm’s accounting value as of a particular date?
Which of the following statement is considered as the accountant’s snapshot of firm’s accounting value as of a particular date?
A. Income Statement
B. Balance Sheet
C. Cash Flow Statement
D. Retained Earning StatementWhich of the following statements is/are true ?
Which of the following statements is/are true ?A. A sale of an asset is recorded in the Sales Book
B. Total of Return Outward Book is debited to Return Outward Account
C. The balance of Petty Cash Book is a liability
D. Cash Book is a subsidiary book as well as a ledgerThe sale of an asset is recorded in the Asset Account and not in the Sales book (which
pertains to sale of goods). Statement A. is false.
Total of Return Outwards book (being purchase return) has a credit balance. The total is transferred at the end of the period to the credit of the Purchase Account and not debited to Return Outwards Account. Statement B. is false.
The balance of Petty Cash book is not a liability, it is an asset as it is the balance of cash left with the petty cashier. Statement C. is incorrect.
Cash Book is both a subsidiary book or book of original entry where all cash transactions are directly recorded and a ledger, it plays the role as a Cash Account (a ledger). Hence statement
D. is true.Amount paid to Masood posted to the credit side of his account would affect___________?
Amount paid to Masood posted to the credit side of his account would affect___________?
A. Masood’s account
B. Cash account
C. Cash account and Gagan’s account
D. None of theseIn the books of the drawer, the accounting treatment involved on receipt of a bill of exchange duly accepted by the drawee is?
In the books of the drawer, the accounting treatment involved on receipt of a bill of exchange duly accepted by the drawee is?i. Debit Bills Receivable Account
ii. Debit Drawee‘s Account
iii. Credit Drawee‘s Account
iv. Credit Sales Account
A. Only (i) above
B. Both (ii) and (iv) above
C. Both (i) and (iii) above
D. Both (i) and (iv) above
In the books of the drawer, the accounting treatment involved on receipt of a bill of
exchange duly accepted by the drawee is debit Bills Receivable Account and credit Drawee‘s Account .i.e., the combination of statements in (i) and (iii) alternative C. is the correct answer. The other alternatives are incorrect because the combination of one correct answer with the statement of incorrect answer. Drawee‘s Account is debited (ii) as soon as a sale is made or any advances is made and Drawee‘s Account is not debited when the bill of exchange is accepted and sales is credited (iv) when the sale is made and not at the time of acceptance of bill of exchange. Thus, the alternatives A., statement (i) B., combination of (ii) and (iv) D. combination of (i) and (iv) are incorrect.Capital expenses are shown in___________?
Capital expenses are shown in___________?
A. Balance Sheet
B. Profit and Loss A/c
C. Trading A/c
D. None of these_________ is the evidence that a transaction took place?
_________ is the evidence that a transaction took place?
A. Source documents
B. Ledger
C. Bonds
D. Journals