Accounting - Study Mode

[#631] Discount allowed is a kind of deduction from
Correct Answer

(B) Account Receivable

Explanation

Solution: Discount allowed is a kind of deduction from Account Receivable.

[#632] The other name of Journal is
Correct Answer

(C) Day Book

Explanation

Solution: The other name of Journal is Day Book. A journal is also named the book of original entry, from when transactions were written in a journal prior to manually posting them to the accounts in the general ledger or subsidiary ledger.

[#633] The Journal entry in which two or more account is debited or credited is referred to as
Correct Answer

(D) Compound entry

Explanation

Solution: The Journal entry in which two or more account is debited or credited is referred to as Compound entry. A compound journal entry is an accounting entry in which there is more than one debit, more than one credit, or more than one of both debits and credits.

[#634] Goods returned by customer should be debited to which of the following accounts?
Correct Answer

(C) Return inward account

Explanation

Solution: Goods returned by customer should be debited to Return inward account.

[#635] Discount allowed is
Correct Answer

(A) Expense of business

Explanation

Solution: Discount allowed is Expense of business. When the buyer receives a discount, this is recorded as a reduction in the expense (or asset) associated with the purchase, or in a separate account that tracks discounts.