Accounting - Study Mode
[#1501] Which is the best depreciation method in case of mineral deposit?
Correct Answer
(A) Depletion method
[#1502] There is decrease in the ownership of the owners by-
Correct Answer
(A) Issue of bonus share
[#1503] Which of them are current liabilities? 1. Debentures 2. Prepaid rent 3. Interest accrued 4. Bank overdraft Select the correct answer:
Correct Answer
(B) Only 4
Explanation
Solution: Current liabilities are obligations that a company needs to settle within a year. 1. Debentures are long-term liabilities, not current liabilities. 2. Prepaid rent is considered an asset, not a liability. 3. Interest accrued is a current liability as it represents interest that is owed but not yet paid. 4. Bank overdraft is a current liability because it is a short-term borrowing from a bank. Therefore, the only correct current liability among the options is the bank overdraft.
[#1504] Responsibility accounting aims to
Correct Answer
(B) ensure that costs become the responsibility of a specific manager
[#1505] A firm stands dissolve in the following cases 1. the partners agree that the firm should be dissolved. 2. the business becomes legal. 3. in case of partnership at will, a partner gives notice of dissolution. 4. the court orders dissolution. Select the correct answer:
Correct Answer
(D) Only 2