Accounting - Study Mode
[#2146] An 'account' records the ______ in the balance of an item
Correct Answer
(C) Increase or decrease
Explanation
Solution: An 'account' records the Increase or decrease in the balance of an item. An account is an individual accounting record of increase and decrease in a specific asset, liability or stockholders equity item.
[#2147] _____ will be credited if goods are given as charity
Correct Answer
(C) Purchases
Explanation
Solution: Purchases will be credited if goods are given as charity. When accounting for goods given as charity, purchases are reduced with the exact cost of goods contributed. The amount is reduced from purchases in the trading account. It is shown as an expense on the debit side of the income statement.
[#2148] Which of the following is known as the base for preparing trial balance?
Correct Answer
(C) Ledger account
Explanation
Solution: Ledger account is known as the base for preparing trial balance. The trial balance can then be prepared by listing each closing balance from the general ledger accounts as either a debit or a credit balance.
[#2149] Under net payment method, purchase consideration includes all payments made to the shareholders in the form of . . . . . . . .
Correct Answer
(D) All of these
[#2150] Depreciation deducted from the concerned . . . . . . . .
Correct Answer
(B) Asset