Stat, Math & Financial MCQs / Q&A
A. Sometimes normal for all sample sizes
B. Sometimes normal for large sample sizes
C. Always normal for all sample sizes
D. Always normal for large sample sizes (Correct)
A. 1
B. 2
C. 0 (Correct)
D. Constant
A. Regular reduction of asset value to correspond to changes in market value as the asset ages
B. A process of correlating the market value of an asset with its gradual decline in physical efficiency
C. Allocation of cost in a manner that will ensure that Plant and Equipment items are not carried on the Balance Sheet in excess of net realizable value
D. Allocation of the cost of an asset to the periods in which services are received from the asset (Correct)
AS-6 defines depreciation as a measure of the wearing out, consumption or other loss of value of a depreciable asset arising from use, effluxion of time or obsolescence through technology and market changes. Depreciation is allocated so as to change a fair proportion of the depreciable amount in each accounting period during the expected useful life of the asset. Depreciation includes amortization of assets whose useful life is predetermined. The ultimate outcome of accounting for depreciation is cash available to replace the asset; however, this cannot be the purpose of depreciation.
Which of the following statements best describes the purpose of depreciation? Read More »
MCQs / Q&A, Stat, Math & Financial MCQs / Q&AA. 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 (Correct)
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.
A. Purchases return journal
B. Sales journal (Correct)
C. Purchase journal
D. Sales return journal
Sales on credit are recorded in which of the following journal? Read More »
MCQs / Q&A, Stat, Math & Financial MCQs / Q&A