Accounting - Study Mode
[#1086] Bills receivable endorsed are debited to
Correct Answer
(C) Endorsee A/c
Explanation
Solution: Bills receivable endorsed are debited to Endorsee A/c. The endorsee will be the owner of the bill and he will realise the payment of the bill on the due date from the drawee.
[#1087] Del-credere Commission is allowed to cover
Correct Answer
(D) None of the above
Explanation
Solution: Del Credere Commission. It is a special commission given by the consignor to the consignee. When of commission is given, the consignee undertakes upon himself the risk of any .bad debts arising out of the credit So this Del Credere commission in the form of insurance premium against the risk of bed debts.
[#1088] Interest on Capital is _____ for the business
Correct Answer
(B) Expense
Explanation
Solution: Interest on Capital is expense for the business and is debited to the profit and loss appropriation account.
[#1089] Accounts payable has ____ balance
Correct Answer
(A) Credit
Explanation
Solution: Accounts payable has Credit balance. Since Accounts Payable is a liability account, it should have a credit balance.
[#1090] The concept that "an accountant shouldn't anticipate profit, but must provide for all losses"
Correct Answer
(A) Conservation concept
Explanation
Solution: Conservation concept states that "an accountant shouldn't anticipate profit, but must provide for all losses". The concept that an accountant shouldn't anticipate profit, but must provide for all losses is known as The conservatism concept.