Accounting - Study Mode
[#616] Under which of the following method of depreciation the amount of asset is never reduced to zero?
Correct Answer
(B) Diminishing balance method
[#617] 'Contingent liability' is a liability
Correct Answer
(C) Which existence or non-existence depends on happening of a certain event
[#618] A machine was bought on 1 st January, 1994 for Rs. 10,000. Its working life was estimated to be four years. The method of depreciation used is the 'sum of the year digit'. The machine was discarded and sold on 30 th June, 1996 for Rs. 1,000. The profit/loss on sale of the discarded machine was:
Correct Answer
(D) Rs. 1,000 loss
[#619] If a cheque sent for collection is dishonoured, the debit is given to:
Correct Answer
(B) bank account
[#620] Which of the following pairs are correctly matched? I. Business entity - Accounting standard II. Stock valuation - Consistency III. Capital - Drawings IV. Going concern - Assumption Select the correct answer using the options given below-
Correct Answer
(D) I, III and IV