Accounting - Study Mode
[#841] Which of the following account will be credited when the goods are purchased on credit from Mr. Ali?
Correct Answer
(B) Mr. Ali account
Explanation
Solution: Mr. Ali account will be credited when the goods are purchased on credit from Mr. Ali.
[#842] An informal accounting statement that lists the ledger account balances at a point of time and compares the total of debit balances with the total of credit balances is known as
Correct Answer
(C) Trial balance
Explanation
Solution: An informal accounting statement that lists the ledger account balances at a point of time and compares the total of debit balances with the total of credit balances is known as Trial balance. A trial balance is a bookkeeping worksheet in which the balance of all ledgers are compiled into debit and credit account column totals that are equal.
[#843] Documentary evidence, in a specific format used to record the details of a transaction is known as
Correct Answer
(B) Voucher
Explanation
Solution: Documentary evidence, in a specific format used to record the details of a transaction is known as Voucher. Voucher is documentary evidence in a specific format that records the details of a transaction. It is accompanied by the evidence of transaction.
[#844] Cost incurred for the maintenance of shop is considered as
Correct Answer
(C) Revenue expenditure
Explanation
Solution: Cost incurred for the maintenance of shop is considered as Revenue expenditure. A revenue expenditure is a cost that will be an expense in the accounting period when the expenditure takes place.
[#845] Double entry accounting system includes
Correct Answer
(C) Both cash and accrual accounting
Explanation
Solution: Double entry accounting system includes both cash and accrual accounting. Double entry, a fundamental concept underlying present-day bookkeeping and accounting, states that every financial transaction has equal and opposite effects in at least two different accounts.