Accounting - Study Mode

[#1586] Both assets and owners equity would be increased by . . . . . . . .
Correct Answer

(A) capital brought in

[#1587] Creating provision for bad and Doubtful debts is based on which accounting concept?
Correct Answer

(C) Conservatism concept

[#1588] Who among the following can be appointed as a debenture trustee?
Correct Answer

(D) Who is not subject to any gurantee in respect of principal loans reserved by way of debentures or interest thereon

[#1589] The most rigorous test of liquidity is:
Correct Answer

(C) Absolute Ratio

[#1590] A machine was purchased for Rs. 10,000 and its life was estimated to be 3 years, and at the end of its life, its book value was Rs. 5,120. If depreciation is calculated according to Diminishing Balance method, the rate of depreciation would be:
Correct Answer

(C) 20%