At the time of preparation of financial accounts, bad debt recovered account will be transferred to??
A. Debtors A/c
B. Profit
The concept of conservatism will have the effect of______________??
A. Overstatement of Assets
B. Understatement of Assets
C. Overstatement of Liabilities
D. Understatement of Liabilities
Which of the following assets is/are to be valued at the lower of cost and net realizable value??
A. Goodwill
B. Inventories
C. Investments
D. Both
B. and
C. above.
Payments received in advance from a customer for a contract can be__________??
A. Shown as a deduction from contract work-in-progress on asset side
B. Shown as a liability
C. Credited to P
For which step of accounting process the accountants of business entity prepare financial statements??
A. Identification of economic event
B. Communication of financial information
C. Recording financial information
D. Making decisions about business
Cash discount is provided on _______________??
A. Purchases
B. Prompt payment
C. Sales
D. Sales return
If the minimum stock level and average stock level of raw material are 4,000 and 9,000 units respectively, find out its reorder quantity.?
A. 8,000 units
B. 11,000 units
C. 10,000 units
D. 9,000 units
If goods worth 1,750 returned to a supplier is wrongly entered in sales return book as 1,570, then?
A. Net Profit will decrease by 3,140
B. Gross Profit will increase by 3,320
C. Gross Profit will decrease by 3,500
D. Gross Profit will decrease by 3,320
When bill discounted with the bank is dishonored??
A. Acceptor’s Account is debited in the books of drawer
B. Bills Receivable Account is credited in the books of drawer
C. Bank Account is debited in the books of drawer
D. Bills Payable Account is debited in the books of drawer
An income statement in which each item expressed as percentage of Sale??
A. Balance sheet
B. income statement
C. common size income statement
D. All of the Above
