Accounting - Study Mode

[#1971] Which of the following is NOT an example of intangible assets?
Correct Answer

(D) Land

Explanation

Solution: Land is NOT an example of intangible assets. An intangible asset is an asset that is not physical in nature.

[#1972] Which of the following is an example of business liability?
Correct Answer

(D) Creditors

Explanation

Solution: Creditors is an example of business liability. A liability is defined as a company's legal financial debts or obligations that arise during the course of business operations.

[#1973] The unfavorable balance of Profit and Loss account should be
Correct Answer

(C) Subtracted from capital

Explanation

Solution: Loss is subtracted from capital account and profit is added to capital account.

[#1974] Which of the following account will be credited, if business bought goods on credit from Mr. Z?
Correct Answer

(B) Mr. Z account

Explanation

Solution: Mr. Z account account will be credited, if business bought goods on credit from Mr. Z.

[#1975] Interest on loan paid by business is an example of
Correct Answer

(A) Revenue expense

Explanation

Solution: Interest on loan paid by business is an example of Revenue expense. A revenue expenditure is a cost that is charged to expense as soon as the cost is incurred.