Accounting - Study Mode
[#846] Which of the following financial statements show the financial health of an organisation at a stated point of time?
Correct Answer
(A) Balance sheet
Explanation
Solution: Balance sheet financial statements show the financial health of an organisation at a stated point of time. A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity at a specific point in time, and provides a basis for computing rates of return and evaluating its capital structure.
[#847] The estimated value at which an asset is expected to be sold after the end of its useful life is called
Correct Answer
(D) All of the above
Explanation
Solution: The estimated value at which an asset is expected to be sold after the end of its useful life is called Residual value, Salvage value and Scrap value.
[#848] Drawings Account is
Correct Answer
(B) Personal Account
[#849] Compensating error affects
Correct Answer
(D) None of the above
[#850] Match the following List I List II a. Revenue means the income of a . . . . . . . . nature. 1. Fixed assets b. Premium paid on the life insurance policy of the proprietor will be debited to . . . . . . . . account. 2. Regular c. Going concern concept is relevant for . . . . . . . . 3. Matching d. Recognition of cost in the same period as associated revenues is called . . . . . . . . principle. 4. Drawings
Correct Answer
(B) a-2, b-3, c-4, d-1