Accounting - Study Mode
[#951] Which of the following is/are fixed asset(s)?
Correct Answer
(C) Patents
Explanation
Solution: Patents are fixed assets. The accounting process for patents is similar to other fixed assets. Companies allocate or amortize the costs over the life of the patent.
[#952] The expenses that have fallen due for payment but not paid are
Correct Answer
(A) Outstanding expenses
Explanation
Solution: The expenses that have fallen due for payment but not paid are Outstanding expenses. Outstanding expenses are those expenses which have been incurred during the current accounting period and are due to be paid, however, the payment is not made.
[#953] Which of the following subsidiary books serves the purpose of ledger too, in addition to the recording of accounting transaction?
Correct Answer
(D) Cash Book
Explanation
Solution: Cash Book serves the purpose of ledger too, in addition to the recording of accounting transaction. A cash book is a financial journal that contains all cash receipts and payments, including bank deposits and withdrawals. Entries in the cash book are then posted into the general ledger.
[#954] Accounting is the process of matching
Correct Answer
(B) Revenues and costs
Explanation
Solution: Accounting is the process of matching Revenues and costs. The matching concept is an accounting practice whereby firms recognize revenues and their related expenses in the same accounting period. Firms report "revenues," that is, along with the "expenses" that brought them.
[#955] Which of the following event is subject matter of Accounting?
Correct Answer
(C) Payment of Rs.1000 to bank in discharge of outstanding loan
Explanation
Solution: Payment of Rs.1000 to bank in discharge of outstanding loan is subject matter of Accounting.