Accounting - Study Mode
[#2471] Which of the following are closed at the end of an accounting period?
Correct Answer
(A) Nominal accounts
Explanation
Solution: Nominal accounts in accounting are the temporary accounts, Revenue or Expense are transferred to profit and loss account and closed at the end of each accounting year.
[#2472] Which of the following is the closing balance of a ledger account?
Correct Answer
(A) Balance c/d
Explanation
Solution: Balance c/d is the closing balance of a ledger account.
[#2473] Trial Balance is prepared to check accuracy of
Correct Answer
(A) Ledger account balances
Explanation
Solution: A Trial Balance is a statement that shows the total of debit and credit balances of accounts. The total of debit amounts shall be equal to the credit amounts for the trial balance to tally. Hence, it verifies the arithmetical accuracy of the postings in the ledger accounts.
[#2474] The balance of Capital Redemption Reserve Account is available for:
Correct Answer
(D) Issue of bonus shares
[#2475] Earning return ratio shows the relationship between earning per share and whom?
Correct Answer
(B) Number of equity share