Under the direct write-off method of recognizing a bad debt expense. Which of the following statements is/are true?

✅ B. Royalty

Option A : Dividend Option B : Royalty Option C : Purchase consideration Option D : Installment Correct Answer : Royalty Read more

✅ D. Amount to be paid in foreign currency

Option A : Unconditional Option B : Certainty of amount Option C : In writing Option D : Amount to be paid in foreign currency Correct Answer : Amount to be paid in foreign currency Read more

✅ B. Putting the new asset in working condition

Option A : Expenses for day to day running of the business Option B : Putting the new asset in working condition Option C : Depreciation Option D : Purchase of raw material Correct Answer : Putting the new asset in working condition Read more

✅ C. Gross Profit + Opening Stock + Direct expenses + Purchases- Closing stock = Sales

Option A : Gross Profit+ Sales+ Direct expenses+ Purchases+ Closing stock = Opening stock Option B : Gross Profit+ Sales+ Direct expenses+ Purchases- Closing stock = Opening Stock Option C : Gross Profit + Opening Stock + Direct expenses + Purchases- Closing stock = Sales Option D : Gross Profit “ Opening Stock + Direct expenses + Purchases +Closing stock… 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

✅ 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

✅ A. 18,387

Option A : 18,387 Option B : 18,560 Option C : 18,750 Option D : 19,000 Correct Answer : 18,387 Read more

✅ C. Cash discount

Option A : Trade discount Option B : Prompt payment discount Option C : Cash discount Option D : Bulk discount Correct Answer : Cash discount Read more