Miscellaneous In Commerce - Study Mode

[#266] Franking machine is used for-
Correct Answer

(D) Printing of stamp on envelops

[#267] Which of the following is a real (permanent) account?
Correct Answer

(D) Both Goodwill and Accounts Receivable

[#268] Which of the following functions is managerial accounting intended to facilitate?
Correct Answer

(D) All of these

[#269] The revenue recognition principal dictates that all types of incomes should be recorded or recognized when:
Correct Answer

(C) When they are earned

[#270] A business has the following items in it: Land Rs. 1,500,000 Machinery Rs. 80,000 Cash Rs. 20,000 Owners equity Rs. 900,000 Loan Rs. 500,000 Creditors?
Correct Answer

(A) Rs. 200,000

Explanation

Solution: The accounting equation is Assets = Liabilities + Owners' Equity . In this case: Assets = Land + Machinery + Cash = 1,500,000 + 80,000 + 20,000 = Rs. 1,600,000 Liabilities + Owners' Equity = Loan + Creditors + Owners' Equity 1,600,000 = 500,000 + Creditors + 900,000 Solving for Creditors: 1,600,000 - 500,000 - 900,000 = Creditors Creditors = 200,000 Therefore, the amount for Creditors is Rs. 200,000 .