Accounting - Study Mode
[#1646] When capital is increased by an amount, it is recorded on the:
Correct Answer
(C) Right or credit side of the account
Explanation
Solution: When capital is increased by an amount, it is recorded on the Right or credit side of the account.
[#1647] Noting charges are paid at the time of
Correct Answer
(C) Dishonor of the bill
Explanation
Solution: Noting charges are paid at the time of Dishonor of the bill. When a Bill of Exchange is dishonoured, in order to prove the fact, the drawer (or holder) may get the bill of exchange noted and protested through a public official known as “Notary Public” Noting is the recording of the fact of dishonour by a Notary public which becomes an evidence of dishonour.
[#1648] Dismantling and demolition charges is a
Correct Answer
(C) Revenue expenditure
Explanation
Solution: Dismantling and demolition charges is a Revenue expenditure. A revenue expenditure is a cost that will be an expense in the accounting period when the expenditure takes place.
[#1649] The owner of consignment stock is
Correct Answer
(A) Consignor
Explanation
Solution: The owner of consignment stock is Consignor.
[#1650] Which account is the odd one out?
Correct Answer
(C) Stock of raw materials
Explanation
Solution: Stock of raw materials is the odd one out. Raw materials inventory is the total cost of all component parts currently in stock that have not yet been used in work-in-process or finished goods production. There are two subcategories of raw materials, which are: Direct materials.