Current assets – Current liabilities=?

A. 30th June,2018
B. 1st July,2018
C. 4th July,2018
D. 4th August,2018
Bill drawn on 1st April, 2018 payable after 3 months. The due date is 1st April, 2018 + 3
months + 3 days of grace = 4th July, 2018

Tax deducted at source A/c appears in___________?

A. Assets side
B. Liability side
C. Profit & Loss A/c
D. Debited to Capital A/c

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 remains the same
D. The amount of depreciation and the rate of depreciation increases every year

Under the written down value method of depreciation, the rate of percentage of depreciation is fixed, but it applies to the value of the asset at which the asset stands in the books in the beginning of the year. Therefore, the amount of depreciation decreases as the fixed rate of depreciation is charged on written down values of the asset.

An increase in provision for bad debt will____________?

A. Decrease net income
B. Decrease liabilities
C. Increase net income
D. Increase liabilities

A. Sinking Fund Method
B. Annuity Method
C. Sum of Year Digits Method
D. None of these

Financial accounting provides financial information to all of the following external users except:

A. Government agencies
B. investors
C. Creditors
D. Managers