Accounting

The accounting concept which allows the use of a particular method for treating a transaction for a reasonable number of years is?

A. consistency B. cost C. accrual D. conservatism Correct Answer: Option A A. consistency

6 years ago

Net debtors is?

A. debtors less provision for bad debts B. debtors plus provision for bad debts C. debtors less prepayments D. debtors…

6 years ago

Which of the following is correct about cost of goods sold?

A. opening stock + purchases - closing stock B. opening stock + sales + closing stock C. opening stock -…

6 years ago

The amount set aside out of profit for a specific purpose is?

A. provision B. reserve C. depreciation D. depletion Correct Answer: Option A A. provision

6 years ago

Which of the following terms describes the provision made for the loss in the value of an asset that has a legal life span?

A. capitalization B. depreciation C. depletion D. amortization Correct Answer: Option B B. depreciation

6 years ago

The total of the purchases day book is posted to the purchases account in the?

A. general ledger B. purchases journal C. private ledger D. purchases ledger Correct Answer: Option D D. purchases ledger

6 years ago

Which of the following items is not shown in the Trial Balance?

A. closing stock value B. opening stock balance C. opening debtors balance D. closing asset value Correct Answer: Option A…

6 years ago

Pending the location of an error, the difference disclosed in a trial balance is temporarily treated in?

A. suspense Account B. trading account C. control account D. profit and loss account Correct Answer: Option A A. suspense…

6 years ago

Which of the following is not a source document?

A. credit note B. invoice C. debit note D. bank note Correct Answer: Option D D. bank note

6 years ago

Where a proprietor withdraws stock for personal consumption, the accounting entries to record the transaction are?

A. debit drawings account, credit purchases account B. debit purchases account, credit sales account C. debit sales account, credit drawings…

6 years ago