Accounting - Study Mode

[#566] The policy to anticipate no profit and provide for all possible losses arises due to convention of . . . . . . . .
Correct Answer

(D) Conservatism

[#567] Expenditure incurred on research is an example of . . . . . . . .
Correct Answer

(C) deferred revenue expenditure

[#568] Unearned income account is:
Correct Answer

(B) a liability

[#569] Errors are _____ mistakes
Correct Answer

(C) Unintentional

Explanation

Solution: Errors are Unintentional mistakes. Some unintentional act, omission, or error arising from ignorance, surprise, imposition, or misplaced confidence. A state of mind not in accord with reality.

[#570] Which error cannot be revealed on the preparation of trial balance?
Correct Answer

(B) Compensatory errors

Explanation

Solution: Compensatory errors cannot be revealed on the preparation of trial balance. Compensating Errors are error on the debit side and is compensated by an error of equal amount on the credit side.