Accounting - Study Mode
[#1816] Transaction between business and owner are recorded following ____ concept
Correct Answer
(B) Business entity
Explanation
Solution: Transaction between business and owner are recorded following Business entity concept. The business entity concept states that the transactions associated with a business must be separately recorded from those of its owners or other businesses.
[#1817] One of the Fundamental accounting assumption is
Correct Answer
(B) Going concern
Explanation
Solution: One of the Fundamental accounting assumption is Going concern. Going concern is an accounting term for a company that has the resources needed to continue operating indefinitely until it provides evidence to the contrary.
[#1818] Contra-entries are passed only when
Correct Answer
(A) Double column cash book is prepared
Explanation
Solution: Contra-entries are passed only when Double column cash book is prepared. The reason for making two entries is to comply with the principle of double entry.
[#1819] Petty cash balance is
Correct Answer
(D) Asset
Explanation
Solution: Petty cash balance is Asset. The petty cash amount may appear as the first or second item listed in the current asset section of the balance sheet.
[#1820] Dividends are usually paid as a percentage of
Correct Answer
(D) Paid up capital
Explanation
Solution: Dividends are usually paid as a percentage of Paid up capital.