Accounting - Study Mode

[#261] Which of the following is used to record financial transactions in chronological (day-to-day) order?
Correct Answer

(B) General Journal

Explanation

Solution: General Journal is used to record financial transactions in chronological (day-to-day) order.

[#262] Net Profit = Gross Profit minus
Correct Answer

(A) Operating expenses

Explanation

Solution: Net Profit = Gross Profit minus Operating expenses.

[#263] Money spent to acquire or upgrade physical assets is known as
Correct Answer

(B) Capital expense

Explanation

Solution: Money spent to acquire or upgrade physical assets is known as Capital expense, as the asset is expected to be utilised in a long run.

[#264] Salaries paid in advance should be shown on
Correct Answer

(A) Asset side of the Balance sheet

Explanation

Solution: Salaries paid in advance should be shown on Asset side of the Balance sheet. An advance paid is recorded as a current asset in the company's balance sheet.

[#265] Which of the following assets are shown at written down value in Balance sheet?
Correct Answer

(D) Fixed asset

Explanation

Solution: Fixed asset are shown at written down value in Balance sheet. If the asset is not impaired and the company operates under GAAP, then the cost model must be used.