Accounting - Study Mode
[#2001] There must be a gap of at least ___ month between two calls
Correct Answer
(B) 1
Explanation
Solution: There must be a gap of at least 1 month between two calls.
[#2002] Difference of total of debit and credit side of the trial balance is transferred to
Correct Answer
(A) Suspense A/c
Explanation
Solution: Difference of total of debit and credit side of the trial balance is transferred to Suspense A/c. Suspense accounts are used when your trial balance is out of balance or when you have an unidentified transaction. The suspense account is a general ledger account that acts as a holding account until the error is discovered or the unknown transaction is identified.
[#2003] Municipal tax Rs.6000 under dispute is a
Correct Answer
(A) Contingent liability
Explanation
Solution: Municipal tax Rs.6000 under dispute is a Contingent liability. Contingent liabilities are liabilities that may be incurred by an entity depending on the outcome of an uncertain future event such as the outcome of a pending lawsuit.
[#2004] Joint venture account is a
Correct Answer
(A) Nominal account
Explanation
Solution: Joint venture account is a Nominal account.
[#2005] Capital expenditures are recorded in the
Correct Answer
(C) Balance sheet
Explanation
Solution: Capital expenditures are recorded in the Balance sheet. A capital expenditure is recorded as an asset, rather than charging it immediately to expense. It is classified as a fixed asset, which is then charged to expense over the useful life of the asset, using depreciation.