Accounting - Study Mode

[#1306] Which liability is not included in the total of Balance Sheet?
Correct Answer

(B) Contingent liabilities

Explanation

Solution: Contingent liabilities is not included in the total of Balance Sheet. The contingent liability will be disclosed in the notes to the financial statements.

[#1307] Revenue expenditures are recorded in the
Correct Answer

(D) All of the above

Explanation

Solution: Revenue expenditures are recorded in the Manufacturing account, Trading account and Profit & loss account.

[#1308] In case of opening Credit Balance, the word ______ are written on the credit side.
Correct Answer

(A) By Balance b/d

Explanation

Solution: In case of opening Credit Balance, the word By Balance b/d are written on the credit side.

[#1309] Preliminary expenses are treated as
Correct Answer

(D) Miscellaneous expenditure

Explanation

Solution: Preliminary expenses are treated as Miscellaneous expenditure. Preliminary expenses are those that are incurred before incorporation of a company or commencement of business.

[#1310] If opening stock Rs. 50,000, closing stock Rs. 60,000 and cost of gold sold is Rs. 2,20,00, then stock turnover ratio will be
Correct Answer

(C) Four times