Which of the following will be debited if a business purchases goods on credit?
Which of the following will be debited if a business purchases goods on credit?
A. Cash
B. Debtor
C. Creditor
D. Purchases
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The normal balance of capital account is_____________?
The normal balance of capital account is_____________?A. Credit balance
B. Debit balance
C. Cash balance
D. Neither debit nor credit balanceAssets having physical existence are called ___________?
Assets having physical existence are called ___________?A. Current asset
B. intangible asset
C. Tangible asset
D. Liquid assetWhich of the following is true with respect to providing depreciation under diminishing balance method?
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 yearUnder 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.
Which of the following errors affects the agreement of a Trial Balance?
Which of the following errors affects the agreement of a Trial Balance?
A. Mistake in balancing an account
B. Omitting to record a transaction entirely in the subsidiary books
C. Recording of a wrong entry in the subsidiary books
D. Posting an entry on the correct side but in the wrong accountA. The mistake in balancing an account affects the agreement of a Trial Balance A. is the
correct answer. The other mistakes do not affect the agreement of Trial Balance. The omission to
record a transaction entirely in the subsidiary books B. will not affect the agreement of a Trial
Balance because both the aspects of a transaction are omitted to be recorded. Recording of a
wrong entry in the subsidiary books (c ) will not cause disagreement of a Trial Balance because,
the wrong entry so recorded has the effect of posting the transaction in the manner it is recorded.
Posting an entry on the correct side in the wrong account D. does not affect the tallying of a Trial
Balance because the aspect of the transaction is posted to the correct side of an account. Thus
A. is the correct answer.Which of the following is the closing balance of a ledger account?
Which of the following is the closing balance of a ledger account?A. Balance c/d
B. Balance b/d
C. Balance e/d
D. Balance f/cOutstanding salaries is shown as___________?
Outstanding salaries is shown as___________?A. An Asset in the Balance Sheet
B. A Liability
C. By adjusting it in the P & L A/c
D. Both B. and C. above
Outstanding salaries is the expense relating to the current accounting period but has not
been paid yet and therefore, it is a current liability.