Accounting - Study Mode

[#2571] Opening and closing inventories are recorded in
Correct Answer

(A) Journal proper

Explanation

Solution: Opening and closing inventories are recorded in Journal proper.

[#2572] Which of the following instruments is not a negotiable instrument?
Correct Answer

(C) Crossed cheque

Explanation

Solution: Crossed cheque is not a negotiable instrument. A cheque is a negotiable instrument. It can either be open or crossed. While a crossed cheque is not payable over the counter but shall be collected only through a banker. The amount payable for the crossed cheque is transferred to the bank account of the payee.

[#2573] The installation expenses for a new machinery will be debited to
Correct Answer

(C) Machinery A/c

Explanation

Solution: The installation expenses for a new machinery will be debited to Machinery A/c.

[#2574] When obligation is not probable or the amount expected to be paid to settle the liability cannot be measured with sufficient reliability, it is called
Correct Answer

(A) Contingent liability

Explanation

Solution: When obligation is not probable or the amount expected to be paid to settle the liability cannot be measured with sufficient reliability, it is called Contingent liability. Contingent liability is a potential liability that may occur, depending on the outcome of an uncertain future event.

[#2575] A Trial Balance contains the balances of
Correct Answer

(D) Both 'b' and 'c'

Explanation

Solution: A Trial Balance contains the balances of Real A/c and Nominal A/c and Personal A/c.