If the total liabilities of a business decrease by $5000 what will be the effect on total asset?

Depreciation fund method is also known as__________?

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

The creation of provision for doubtful debts given as an adjustment requires____________?

A. Debit Profit and Loss Account and deduct the provision from debtors
B. Credit Profit & Loss Account and deduct the provision from debtors
C. Credit Profit and Loss Account and add the provision to debtors
D. Debit Profit & Loss Account and add the provision to debtors

The adjustment for provision for bad debts account given in the adjustments is to debit P&L A/c and deduct from Sundry Debtors, the amount of provision for bad debts. Provision for bad debts is created against Sundry Debtors and therefore deducted from Sundry Debtors and Debited to P&L A/c as it is a charge against P&L A/c.

Find the cost of goods sold if goods are sold for 2,000 at 25% profit on cost?A. 1,600
B. 1,500
C. 1,000
D. 1,800Total Sales value =2000

Gross Profit =25 % of Sales
= 25/100×2000
= 500 Gross Profit
Cost of Goods = Total Sales – Gross Profit
=2000-500 = 1500

 

An asset posses which of the following?

A. Future economic benefits for the business
B. All kind of benefits for the business
C. Expenses for the business
D. Merits and Demerits for the business