Accounting - Study Mode

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[#346] Under the accrual concept, which one of the following will not be shown as an asset/liability in the balance sheet of an entity?

(A) Interest due but not paid

(B) Interest due but not received

(C) Interest due and paid

(D) Interest paid but not due

Correct Answer

(C) Interest due and paid

[#347] The amount of depreciation under straight line method vis-a-vis written down value method, when the rate of depreciation is same, would be:

(A) equal in all years

(B) equal in the first year but higher is subsequent years

(C) equal in the first year but lower in subsequent years

(D) lower in the first year but equal in subsequent years

Correct Answer

(B) equal in the first year but higher is subsequent years

[#348] Match List-I with List-II and select the correct answer using the options given below the list: List-I List-II a. Compensating errors 1. Not recording a business transaction b. Errors of omission 2. Charging a Revenue item to capital c. Errors of principle 3. Writing a debit item on the credit side and a credit item on the debit side of equal amount d. Errors of commission 4. Posting a correct amount to a wrong account

(A) a-3, b-1, c-4, d-2

(B) a-2, b-1, c-4, d-3

(C) a-3, b-1, c-2, d-4

(D) a-2, b-1, c-3, d-4

Correct Answer

(C) a-3, b-1, c-2, d-4

[#349] Which of the following are prepared by the organisations keeping only incomplete accounting records? I. Cash book II. Customer's Accounts III. Expenses Accounts IV. Day Books Choose the correct answer using the options given below:

(A) I, II and III

(B) I, II and IV

(C) I, III and IV

(D) II, III and IV

Correct Answer

(B) I, II and IV

[#350] Contingent liability is shown in the balance sheet because of:

(A) Convention of consistency

(B) Convention of materiality

(C) Convention of disclosure

(D) Convention of adventure

Correct Answer

(C) Convention of disclosure