While finalizing the current years accounts, the company realized that an error was made in the calculation of closing stock of the previous year. In the previous year, closing stock was valued more by 50,000. As a result

✅ C. Notes on account to Balance Sheet

Option A : Balance Sheet Option B : Directors report Option C : Notes on account to Balance Sheet Option D : Chairmans report Correct Answer : Notes on account to Balance Sheet Read more

✅ E. above Read More About this Mcq

Option A : Debtors Account Option B : Profit and Loss Account Option C : Provision for Doubtful Debt Account Option D : Either (b )or Correct Answer : Either (b )or above Read more

✅ B. Reduction in operating costs

Option A : Increase in working capacity of an asset Option B : Reduction in operating costs Option C : Replacing damaged parts of an asset Option D : Both and Correct Answer : Both and above Read more

✅ B. Contra entry

Option A : Cash entry Option B : Contra entry Option C : Payment entry Option D : Compound entry Correct Answer : Contra entry Read more

✅ D. 864

Option A : 792 Option B : 820 Option C : 840 Option D : 864 Correct Answer : 864 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

✅ D. Allocation of the cost of an asset to the periods in which services are received from the asset

Option A : Regular reduction of asset value to correspond to changes in market value as the asset ages Option B : A process of correlating the market value of an asset with its gradual decline in physical efficiency Option C : Allocation of cost in a manner that will ensure that Plant and Equipment items are not carried on… Read more

✅ C. Damage paid on account of breach of a contract to supply certain goods

Option A : 1000 paid for the execution of a new plant Option B : Loss of 10,000 incurred in increasing the sitting accommodation of a hotel Option C : Damage paid on account of breach of a contract to supply certain goods Option D : Repair to machinery purchased, second hand. Correct Answer : Damage paid on account of… Read more