Recent developments have made much of a companys inventory obsolete. This obsolete inventory should be?

✅ C. 3

Option A : 4 Option B : 2 Option C : 3 Option D : 5 Correct Answer : 3 Read more

✅ D. All the three

Option A : It bring out any errors committed in preparation of Cash book / Bank Pass Book Option B : Highlights under delay in clearance of cheques deposited but not credited Option C : Help know actual bank balance Option D : All the three Correct Answer : All the three Read more

✅ B. 5,000 incurred on installation of new plant debited to travelling expenses A/c

Option A : 5,000 received from Sham credited to Ram A/c Option B : 5,000 incurred on installation of new plant debited to travelling expenses A/c Option C : 500 paid for wages debited to salary A/c Option D : 500 being purchase of raw material debited to purchase A/c ` 50 Correct Answer : 5,000 incurred on installation of… Read more

✅ C. The retained earnings was overstated during 2011-2012 and retained earnings will be understated during 2012-2013

Option A : The cost of goods sold was overstated during 2011-2012 and income will be understated during 2012-2013 Option B : The income was overstated during 2011-12 and closing inventory will be overstated during 2012-2013 Option C : The retained earnings was overstated during 2011-2012 and retained earnings will be understated during 2012-2013 Option D : The cost of… Read more

✅ B. $500 will be credited

Option A : $500 will be debited Option B : $500 will be credited Option C : Non-adjustable Option D : $1000 will be subtracted Correct Answer : $500 will be credited Read more

✅ D. Cash Book is a subsidiary book as well as a ledger

Option A : A sale of an asset is recorded in the Sales Book Option B : Total of Return Outward Book is debited to Return Outward Account Option C : The balance of Petty Cash Book is a liability Option D : Cash Book is a subsidiary book as well as a ledger Correct Answer : Cash Book is… Read more

✅ D. Cost price or Market price whichever is lower

Option A : Cost Price Option B : Market Price Option C : Cost price or Market price whichever is higher Option D : Cost price or Market price whichever is lower Correct Answer : Cost price or Market price whichever is lower Read more

✅ D. A credit balance in the Pass Book indicates excess of deposits over withdrawals

Option A : If a Trial Balance tallies, it always means that none of the transactions has been completely omitted Option B : A Trial Balance will not tally if a transaction is omitted Option C : A customer to whom goods have been sold on credit cannot avail himself of a cash discount Option D : A credit balance… Read more