Accounting

The accounting concept that assumes that a business will continue operating for an indefinite period is?

A. Business entity B. Going concern C. Consistency D. Duality Correct Answer: Option B B. Going concern Explanation The going…

6 years ago

The accounting concept that allows the cost of kitchen cutlery to be expensed, though it will be used for more than one year is?

A. Materiality B. Accrual C. Going concern D. Business Entity Correct Answer: Option A A. Materiality Explanation In accounting, the…

6 years ago

In the balance sheet of a social club, subscription owing is treated as a?

A. Current liability B. Current asset C. Tangible asset D. Long term liability Correct Answer: Option B B. Current asset…

6 years ago

Which of the following is not revealed by a firm’s accounting records?

A. Profit of a period B. Quality of labour force C. Credit worthiness D. Value of assets Correct Answer: Option…

6 years ago

The total of the returns outwards journal is posted to the?

A. Credit side of the returns outwards book B. Debit side of the returns outwards account C. Debit side of…

6 years ago

Which of the following items is found in the sales ledger control account?

A. Discount received B. Total credit purchases C. Discount allowed D. Returns outwards Correct Answer: Option C C. Discount allowed…

6 years ago

The process of using sales ledger balance to cancel off purchases ledger balance is?

A. Balancing B. Set off C. Reconciliation D. Canceling Correct Answer: Option B B. Set off Explanation A set-off clause…

6 years ago

In preparing a profit and loss account, a decrease in provision for doubtful debts accounts is treated as?

A. Current liability B. Expenses C. Income D. Current asset Correct Answer: Option C C. Income Explanation The effects of…

6 years ago

Which of the following is not a method of depreciating fixed assets?

A. Revaluation B. Straight Line C. Diminishing balance D. Obsolescence Correct Answer: Option D D. Obsolescence Explanation Depreciation methods Straight-line…

6 years ago

The cost of putting goods into a saleable condition is charged to?

A. Balance sheet B. Trial balance C. Profit and loss account D. Trading account Correct Answer: Option C C. Profit…

6 years ago