Accounting - Study Mode
[#256] Which of the following is a selling expense?
Correct Answer
(C) Tax & freight paid on sale
Explanation
Solution: Tax & freight paid on sale is a selling expense. Selling expense (or sales expense) includes any costs incurred by the sales department.
[#257] A debit balance in the bank statement indicates
Correct Answer
(B) Bank overdraft
Explanation
Solution: A debit balance in the bank statement indicates Bank overdraft. Overdrafts are where the bank account becomes negative and the businesses in effect have borrowed from the bank.
[#258] Which one of the following is NOT true about capital expenditure?
Correct Answer
(D) Reduce the profit of the concern
Explanation
Solution: Capital expenditure does not reduce the profit of the concern. Capital expenditures refer to funds that are used by a company for the purchase, improvement, or maintenance of long-term assets to improve the efficiency or capacity of the company.
[#259] Which of the following is not an item of Balance Sheet?
Correct Answer
(C) Sales revenue
Explanation
Solution: Sales revenue is not an item of Balance Sheet. Sales revenue is the amount realized by a business from the sale of goods or services.
[#260] In an account, when credit side total < debit side total, then, the balance is known as
Correct Answer
(B) Debit balance
Explanation
Solution: In an account, when credit side total < debit side total, then, the balance is known as Debit balance. It is the positive balance in the left side of the account.