Accounting - Study Mode
[#2221] Income includes
Correct Answer
(D) All of the above
Explanation
Solution: Income includes Income earned, Income received and Income receivable.
[#2222] Cash Account is
Correct Answer
(B) Real account
Explanation
Solution: Cash Account is Real account. A real account is an account that retains and rolls forward its ending balance from period to period. The areas in the balance sheet in which real accounts are found are assets, liabilities, and equity.
[#2223] Heavy amount spent for the advertisement of new company product is
Correct Answer
(B) Deferred Revenue expenditure
Explanation
Solution: Heavy amount spent for the advertisement of new company product is Deferred Revenue expenditure. Deferred Revenue Expenditure is an expenditure which is revenue in nature and incurred during an accounting period, but its benefits are to be derived in multiple future accounting periods.
[#2224] Liability for bill discounted is a
Correct Answer
(A) Contingent liability
Explanation
Solution: Liability for bill discounted is a Contingent liability. Contingent liability is a potential liability that may occur, depending on the outcome of an uncertain future event.
[#2225] Interest on debentures is calculated on
Correct Answer
(C) Face value of debentures
Explanation
Solution: Interest on debentures is calculated on Face value of debentures. This interest amount is paid periodically, generally yearly or half-yearly. The interest is a charge against the profit of the company.