Accounting - Study Mode
[#506] Heavy initial expenditure on advertising to introduce a new product is classified as
Correct Answer
(D) Deferred revenue expenditure
[#507] Ideal acid test ratio is:
Correct Answer
(B) 1 : 1
[#508] Which of the following sets of expenses are the direct expenses of the business:
Correct Answer
(C) Wages, carriage inwards, local taxes
[#509] Subscription to Newspapers and Periodicals - Rs. 350.00 Sale proceeds of old Newspapers - Rs. 60.00 What amount is posted on the expenditure side of the income and Expenditure Account:
Correct Answer
(A) Rs. 350.00
[#510] Which of the following formula is correct to calculate provision on debtors to be transferred to Profit and Loss Account?
Correct Answer
(C) Bad Debts + New Bad Debts + New Provision - Old Provision