Based on which of the following concepts, is Share Capital Account shown on the liabilities side of a Balance Sheet?

✅ A. Assets

Option A : Assets Option B : Expenditure Option C : Liability Option D : None Correct Answer : Assets Read more

✅ B. Debit balance of cash book

Option A : Credit balance of cash book Option B : Debit balance of cash book Option C : Bank overdraft Option D : Adjusted balance of cash book Correct Answer : Debit balance of cash book Read more

✅ C. Historical cost “ Depreciation portion thereof

Option A : Replacement cost “ Accumulated Depreciation Option B : Historical cost “ Salvage Value Option C : Historical cost “ Depreciation portion thereof Option D : Original cost adjusted for general price-level changes Correct Answer : Historical cost “ Depreciation portion thereof Read more

✅ D. They must be made after the adjusting entries but before the reversing entries

Option A : They must be followed by reversing entries Option B : They transfer the balances in all of the Nominal Accounts to the Trading and Profit and Loss Account Option C : They must be made after the reversing entries but before the adjusting entries Option D : They must be made after the adjusting entries but before… Read more

✅ D. Maintenance of the Asset

Option A : Acquisition of an Asset Option B : Extension of an Asset Option C : Improvement of the existing Asset Option D : Maintenance of the Asset Correct Answer : Maintenance of the Asset Read more

✅ A. When a discounted bill is honoured by the drawee on the due date

Option A : When a discounted bill is honoured by the drawee on the due date Option B : When a bill is sent to the bank for collection Option C : When a bill is renewed at the request of the drawee Option D : When a debtor accepts a bill drawn by the drawer Correct Answer : When… 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. Deduct prepaid expenses from respective expenses and show it as an asset

Option A : Add prepaid expenses to respective expenses and show it as an asset Option B : Deduct prepaid expenses from respective expenses and show it as an asset Option C : Add prepaid expenses to respective expenses and show it as a liability Option D : Deduct prepaid expenses from respective expenses and show it as a liability… Read more