Author: Faraz Ahmed – Page 25

✅ B. All types of cash receipts and payments

Option A : Only cash sales Option B : All types of cash receipts and payments Option C : Only revenue receipts Option D : Only capital receipts Correct Answer : All types of cash receipts and payments Read more

✅ D. Closing stock

Option A : Sales Option B : Purchases Option C : Inward returns Option D : Closing stock Correct Answer : Closing stock Read more

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Option A : Previous years profit is overstated and current years profit is also overstate Option B : Previous years profit is understated and current years profit is overstate Option C : Option D : Previous years profit is overstated and current years profit is understate Correct Answer : Previous years profit is overstated and current years profit is understated. Read more

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Option A : Errors which affect one account can be errors of posting Option B : Errors of omission arise when any transaction is left to be recorded Option C : Errors of carry forward from one year to another year affect both Personal and Real A/c Option D : Errors of commission arise when any transaction is recorded in… Read more

✅ D. Gross Profit will decrease by 3,320

Option A : Net Profit will decrease by 3,140 Option B : Gross Profit will increase by 3,320 Option C : Gross Profit will decrease by 3,500 Option D : Gross Profit will decrease by 3,320 Correct Answer : Gross Profit will decrease by 3,320 Read more

✅ B. All credit purchases of goods

Option A : All purchases of goods Option B : All credit purchases of goods Option C : All credit purchases Option D : None of these Correct Answer : All credit purchases of goods Read more

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Option A : 17,000 (overstated Option B : 12,000 (understated Option C : 7,000 (understated Option D : 7,000 (overstate Correct Answer : Read more

✅ D. The favorable bank balance as per Pass Book is less than the Bank balance as per Cash book

Option A : The Trial Balance will not agree Option B : The balance of creditors is understated Option C : The purchases are understated Option D : The favorable bank balance as per Pass Book is less than the Bank balance as per Cash book Correct Answer : The favorable bank balance as per Pass Book is less than… Read more

✅ C. Results in the acquisition of a permanent asset

Option A : Benefits the current accounting period Option B : Will benefit the next accounting period Option C : Results in the acquisition of a permanent asset Option D : Results in the acquisition of a current asset Correct Answer : Results in the acquisition of a permanent asset Read more

✅ D. Capital receipts

Option A : Liability Option B : Assets Option C : Revenue receipts Option D : Capital receipts Correct Answer : Capital receipts Read more