Accounting - Study Mode

[#1091] Patents accounts are
Correct Answer

(C) Real account

Explanation

Solution: Patents accounts are Real account. Patent right is classified as intangible asset and appear on balance sheet, that is why it is of nature of real account. The balances of real accounts are not cancelled out at the end of an accounting period but are carried over to the next period.

[#1092] Reserve capital means
Correct Answer

(A) Part of subscribed uncalled capital

Explanation

Solution: Reserve capital means Part of subscribed uncalled capital. Reserve Capital is defined as a part of subscribed uncalled capital, which will not be called up until and unless the company goes into liquidation.

[#1093] Revenue from sale of product ordinarily is reported as part of earning in the period
Correct Answer

(B) The sale is made

Explanation

Solution: Revenue from sale of product ordinarily is reported as part of earning in the period when the sale is made.

[#1094] When will the bill mature if the date of maturity of a bill is a holiday
Correct Answer

(C) Preceding working day

Explanation

Solution: Preceding working day the bill will mature if the date of maturity of a bill is a holiday, where the date of maturity is a public holiday, the instrument will become due on the preceding business day.

[#1095] After the redemption of debentures, any credit balance in the Sinking Fund a/c is transferred to . . . . . . . . a/c.
Correct Answer

(A) general reserve