✅ A. Mistake in balancing an account
Option A : Mistake in balancing an account Option B : Omitting to record a transaction entirely in the subsidiary books Option C : Recording of a wrong entry in the subsidiary books Option D : Posting an entry on the correct side but in the wrong account Correct Answer : Mistake in balancing an account Read more
✅ C. Sales tax paid in connection with the purchase of office equipment
Option A : Interest on loans and debentures Option B : Annual fire insurance premiums on Plant and Equipment Option C : Sales tax paid in connection with the purchase of office equipment Option D : Small expenditures on long- lived assets, such as ` 20 for a paper weight. Correct Answer : Sales tax paid in connection with the… 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
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Option A : Expenses in connection with issue of equity shares Option B : Preoperative expenses Option C : Heavy advertising expenses to introduce a new product Option D : Legal expenses incurred in defending a suit for breach of contract to supply goods Correct Answer : 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
✅ C. Installation charges paid in conjunction with the purchase of Office Equipment
Option A : Research and development costs during the year Option B : Interest on borrowed fund utilized for acquisition of Office Furniture Option C : Installation charges paid in conjunction with the purchase of Office Equipment Option D : Monthly rent of a machinery used in the business Correct Answer : Installation charges paid in conjunction with the purchase… Read more
✅ B. Undercasting or overcastting of a subsidiary book is an example or error of commission
Option A : Entering wrong amount in the subsidiary book affects the agreement of the Trial Balance Option B : Undercasting or overcastting of a subsidiary book is an example or error of commission Option C : Errors of principle do not affect the agreement of Trial Balance Option D : Both Correct Answer : Both and above Read more
✅ D. Error of principle involves an incorrect allocation of expenditure or receipt between capital and revenue
Option A : Error of casting affects personal accounts Option B : Omission of a transaction from a subsidiary record affects only one account Option C : Error of carry forward affects two accounts Option D : Error of principle involves an incorrect allocation of expenditure or receipt between capital and revenue Correct Answer : Error of principle involves an… Read more
✅ C. All such transactions for which no special journal has been kept by the business
Option A : Credit purchase of fixed assets Option B : Return of goods Option C : All such transactions for which no special journal has been kept by the business Option D : None of these Correct Answer : All such transactions for which no special journal has been kept by the business Read more
✅ B. It is adjusted in the Purchase A/c
Option A : It is already adjusted in the opening stock Option B : It is adjusted in the Purchase A/c Option C : It is adjusted in the Cost of Sale A/c Option D : It is adjusted in the Profit &Loss A/c Correct Answer : It is adjusted in the Purchase A/c Read more