Updating Financial Statements

Q.

Bad Debts is shown on _____ side of _____ account

1. Credit, Profit or loss

2. Debit, Profit or loss

3. Debit, Trading

4. Credit, Trading

Q.

What are the advantages of the straight line method?

Q.

Is depreciation a cash inflow or outflow?

Q.

Amount Which Is Not Recoverable From Customer Is Known As

1. Bad Debts

2. Debts

3. Debtors

4. Doubtful Debts

Q.

What is the difference between amortisation and depletion?

Q.

Is equity a debit or credit?

Q.

What is IFRS?

Q.

What is the other name for the reducing balance method?

Q.

Bad debt amount should be credited to the ___________ account

1. Debtors

2. Bad debts

3. Sales

4. Creditors

Q.

Are abnormal costs controllable?

Q.

Drawings are shown as _____

1. Expense

2. Both B & C

3. Addition to capital

4. Deduction from capital

Q.

The business assets of an organisation amount to Rs. 50, 000 but the debts that remain unpaid are Rs. 80, 000. What course of action can the creditors take if (a) The organisation is a sole proprietorship firm (b) The organisation is a partnership firm with Anthony and Akbar as partners. Which of the two partners can the creditors approach for repayment of debt? Explain giving reasons

Q.

Is amortisation also called depletion?

Q.

What is the difference between the straight-line method and the written down value method?

Q.

What is an example of a T account?

Q.

Fill In The Blank With The Correct Verb To Complete The Sentence. All The Furniture In This Office ____ of Poor Quality.

Q. Which Reserve has debit balance?

1. General Reserve
2. Contingency Reserve
3. Joint Life Policy Reserve
4. Investment Fluctuation Reserve
5. Reserve for Discount on Creditors

Q.

How does GAAP affect financial reporting?

Q. Match the Following:

1. Expense
2. Income
3. Asset
4. Liability

Q. 1. Determine if the following are assets, liabilities, revenues, expenses or none of the these: sales, debtors, creditors, salary to manager, discount to debtors, drawings by the owner.

Q. Depreciation is a non-cash expense.

1. False
2. True

Q. Furniture is a liabilty to the business.

1. False
2. True

Q. Trading A/c generally contains Opening Stock, Purchases, Sales and Closing Stock.

1. True
2. False

Q. Opening stock is shown on the debit side of the trading account.

1. True
2. False