Which of the following statements best describes the purpose of depreciation?

✅ A. Accountant of the business

Option A : Accountant of the business Option B : Manager of the business Option C : Controller of the bank Option D : Accountant of the bank Correct Answer : Accountant of the business 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

✅ A. Profit & Loss Account is prepared for a certain period and hence it is an interim statement

Option A : Profit & Loss Account is prepared for a certain period and hence it is an interim statement Option B : Profit & Loss Account does not disclose the effect of non-financial items Option C : Net Profits are ascertained on the basis of current costs Option D : Net Profits as disclosed by P&L Account is not… Read more

✅ A. Current Asset

Option A : Current Asset Option B : Current Liability Option C : Fixed Asset Option D : Income Read More Details about this Mcq Correct Answer : Current Asset Read more

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Option A : Prepaid expenses Option B : Trademark Option C : Discount on issue of shares Option D : Outstanding Salaries Read More Details about this Mcq Correct Answer : Outstanding Salaries Read more

✅ B. Bank overdraft

Option A : Surplus cash Option B : Bank overdraft Option C : Terms deposits with bank Option D : None of these Correct Answer : Bank overdraft Read more

✅ A. Passage of time, asset usage, and obsolescence

Option A : Passage of time, asset usage, and obsolescence Option B : Tax regulations and SEBI guidelines Option C : Tax regulations and asset usage Option D : SEBI guidelines and Asset usage Correct Answer : Passage of time, asset usage, and obsolescence Read more

✅ A. No change occurs to inventories for either use absorption costing or variable costing methods

Option A : No change occurs to inventories for either use absorption costing or variable costing methods Option B : The use of absorption costing produces a higher net income than the use of variable costing Option C : The use of absorption costing produces a lower net income than the use of variable costing Option D : The use… Read more