Accounting - Study Mode
[#796] Classification of fixed and variable costs is important
Correct Answer
(B) Determination in operating cost
[#797] The convertible preference shares are converted into:
Correct Answer
(D) equity shares
[#798] If the average collection period is 15 days and average book receivables is Rs. 60,000 then what will be the total annual credit sales?
Correct Answer
(A) Rs. 14,00,000
[#799] Purchase of fixed assets on credit is originally recorded in
Correct Answer
(D) Journal Proper
Explanation
Solution: Purchase of fixed assets on credit is originally recorded in Journal Proper. On the assumption that the asset was purchased on credit, the initial entry is a credit to accounts payable and a debit to the applicable fixed asset account for the cost of the asset.
[#800] The claims against the company not acknowledged as debts are shown as
Correct Answer
(C) Notes to balance sheet
Explanation
Solution: The claims against the company not acknowledged as debts are shown as notes to balance sheet. All claims which the company does not acknowledge as debts should be disclosed. Claims against the company by the labour union for additional wages, compensation, etc. come under this category.