Accounting - Study Mode
[#1976] Which of the following account will be credited when a typewriter is sold that has been used in the office?
Correct Answer
(A) Office equipment account
Explanation
Solution: Office equipment account will be credited when a typewriter is sold that has been used in the office.
[#1977] The allocation of the cost of a tangible plant asset to expense in the periods, in which services are received from the asset, is termed as
Correct Answer
(B) Depreciation
Explanation
Solution: The allocation of the cost of a tangible plant asset to expense in the periods, in which services are received from the as set, is termed as Depreciation. Depreciation is any method of allocating such net cost to those periods in which the organization is expected to benefit from use of the asset. The asset is referred to as a depreciable asset.
[#1978] Which of the following item will be shown on debit side of debtors account?
Correct Answer
(D) Credit sales
Explanation
Solution: Credit sales will be shown on debit side of debtors account. Credit sales means allowances of goods to customers in order to pay in advance.
[#1979] When one or both aspects of a transaction are recorded in the wrong class or category of account, it is called
Correct Answer
(A) Error of principle
Explanation
Solution: When one or both aspects of a transaction are recorded in the wrong class or category of account, it is called Error of principle. An error of principle is an accounting mistake in which an entry is recorded in the incorrect account, violating the fundamental principles of accounting.
[#1980] Any increase in the value of assets is . . . . . . . . to capital reduction.
Correct Answer
(B) credited