Accounting - Study Mode
[#2576] Error which affect only one account can be
Correct Answer
(B) Error of posting
Explanation
Solution: Error which affect only one account can be Error of posting. An error in which amount is posted to the wrong side of the same account is known as error of posting. For example, goods sold to X wrongly credited to his account.
[#2577] In case goods are manufactured and segregated for specified consumers, the best method for valuation of inventory would be
Correct Answer
(D) Specific identification method
Explanation
Solution: In case goods are manufactured and segregated for specified consumers, the best method for valuation of inventory would be Specific identification method. Specific identification inventory valuation method is a way of keeping track of all items in an inventory individually.
[#2578] Overriding commission is generally calculated on
Correct Answer
(B) Total sales exceeding invoice value/cost
Explanation
Solution: Overriding commission is generally calculated on Total sales exceeding invoice value/cost. Overriding Commission is the extra commission allowed to the consignee in addition to the normal commission usually for making extra efforts to sell a new product in the market.
[#2579] Economic life of an enterprise Is split into periodic interval as per ____ concept
Correct Answer
(B) Periodicity
Explanation
Solution: Economic life of an enterprise Is split into periodic interval as per Periodicity concept. It is the concept that each accounting period has an economic activity associated with it, and that the activity can be measured, accounted for, and reported upon.
[#2580] . . . . . . . . profit means profit which would otherwise be available for distribution of dividend.
Correct Answer
(D) Divisible