Accounting

The process of recording is done? A. Two times a year B. once a year C. Frequently during the accounting period(Correct) D. At the end of a accounting period  

The beginnings inventory of the current year is overstated by 5,000 and closing inventory is overstated by 12,000. These errors will cause the net income for the current year by A. 17,000 (overstated. B. 12,000 (understated. C. 7,000 (overstated.(Correct) D. 7,000 (understated.   C. Overstatement of closing stock results in overstatement of profit and overstatement…

The balance of which of the following accounts do not disappear, once they are debited/credited to Trading Account? A. Sales B. Purchases C. Inward returns D. Closing stock(Correct)   The closing stock D. is the value of goods which remain unsold at the end of the period whose balance appears once in Trading Account and…

Which of the following items should not be capitalized relating to fixed assets? A. Interest payable on loans or deferred credits taken for the acquisition or construction of fixed assets before they are ready for use B. Stand by equipment and servicing equipment C. Expenditure incurred on test runs and experimental production D. Administration and…

Which of the following is true with respect to providing depreciation under diminishing balance method? A. The amount of depreciation keeps increasing every year while the rate of depreciation keeps decreasing B. The amount of depreciation and the rate of depreciation decrease every year C. The amount of depreciation decreases while the rate of depreciation…