Accounting - Study Mode
[#1021] Bonus in reduction of premium appears in the revenue a/c as . . . . . . . .
Correct Answer
(B) an expense
[#1022] Bank Reconciliation statement is . . . . . . . .
Correct Answer
(C) a separate statement
[#1023] A person started business with a cash of Rs. 22,000 and stock of Rs. 3,000 on 1 st January, 1996. During the year he made a profit of Rs. 6,000. His creditors were paid Rs. 4,500 for the office furniture supplied. He took goods worth Rs. 3,500 for his daugher's wedding on 30 th June, 1996. The gross assets of his business on 31 st December, 1996 was:
Correct Answer
(A) Rs. 27,500
[#1024] The information for the preparation of receipt and payments account is taken from . . . . . . . .
Correct Answer
(A) cash book
[#1025] Exercising a degree of caution in the case of judgements needed under the condition of uncertainity is the assumption of which of the following accounting concepts?
Correct Answer
(D) Prudence concept
Explanation
Solution: Exercising a degree of caution in the case of judgements needed under the condition of uncertainity is the assumption of Prudence concept. Prudence Concept or Conservatism principle is a key accounting principle which makes sure that assets and income are not overstated and provision is made for all known expenses and losses whether the amount is known for certain or just an estimation.