Accounting - Study Mode

[#946] The three column cash book represents
Correct Answer

(D) Real, personal and nominal accounts

Explanation

Solution: The three column cash book represents Real, personal and nominal accounts. The three column cash book (also known as triple column cash book) has three money columns on both debit and credit side – one on each side for recording discount, cash and bank amounts.

[#947] Carriage inwards refers to the cost of transportation for
Correct Answer

(A) Purchase of materials

Explanation

Solution: Carriage inwards refers to the cost of transportation for Purchase of materials. The carriage inwards costs are considered to be part of the cost of items purchased, since an asset's cost is defined as all costs that are necessary to get the asset in place and ready for use.

[#948] Right shares are the shares
Correct Answer

(C) Offered to the existing equity shareholders

Explanation

Solution: Right shares are the shares Offered to the existing equity shareholders. A rights offering (rights issue) is a group of rights offered to existing shareholders to purchase additional stock shares, known as subscription warrants, in proportion to their existing holdings.

[#949] Which of the following is a real account?
Correct Answer

(B) Cash account

Explanation

Solution: Cash account is a real account. Real accounts show up on a company's balance sheet, which is the financial statement that lists all the accounts that a company has and their balances.

[#950] Which of the following is not an item of revenue expenditure?
Correct Answer

(C) Customs duty paid in connection with the import of equipment

Explanation

Solution: Customs duty paid in connection with the import of equipment is not an item of revenue expenditure. Customs duty paid on import of raw materials. It is capital expenditure.