Accounting - Study Mode
[#571] Parties to a bill of exchange are
Correct Answer
(D) All of the above
Explanation
Solution: Parties to a bill of exchange are Drawer, Drawee and Payee.
[#572] Accommodation bill is drawn
Correct Answer
(C) To cater the fund requirements of both the parties
Explanation
Solution: Accommodation bill is drawn to cater the fund requirements of both the parties. A bill, draft, or note made, drawn, accepted, or endorsed by one person for another without consideration to enable that other to raise money or obtain credit thereby.
[#573] Rs.5000 spent on maintenance of computer is
Correct Answer
(C) Revenue expenditure
Explanation
Solution: Rs.5000 spent on maintenance of computer is Revenue expenditure. A revenue expenditure is a cost that will be an expense in the accounting period when the expenditure takes place.
[#574] The assumption underlying the fixed installment method of depreciation is that of ____ of the asset over its useful life
Correct Answer
(A) Equal usage
Explanation
Solution: The assumption underlying the fixed installment method of depreciation is that of Equal usage of the asset over its useful life.
[#575] _____ will generally show a debit balance
Correct Answer
(C) Drawings
Explanation
Solution: Drawings will generally show a debit balance. A drawing account is an accounting record maintained to track money withdrawn from a business by its owners. A drawing account is used primarily for businesses that are taxed as sole proprietorships or partnerships.