Closing stock is generally valued at______________?
(A) Cost Price
(B) Market Price
(C) Cost price or Market price whichever is higher
(D) Cost price or Market price whichever is lower
Which of the following is true regarding closing entries?
(A) They must be followed by reversing entries
(B) They transfer the balances in all of the Nominal Accounts to the Trading and Profit and Loss Account
(C) They must be made after the reversing entries but before the adjusting entries
(D) They must be made after the adjusting entries but before the reversing entries
Which of the following statements is/are true ?
(A) A sale of an asset is recorded in the Sales Book
(B) Total of Return Outward Book is debited to Return Outward Account
(C) The balance of Petty Cash Book is a liability
(D) Cash Book is a subsidiary book as well as a ledger
Amount paid to Masood posted to the credit side of his account would affect___________?
(A) Masood’s account
(B) Cash account
(C) Cash account and Gagan’s account
(D) None of these
While finalizing the current year‘s 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
(A) Previous year‘s profit is overstated and current year‘s profit is also overstated.
(B) Previous year‘s profit is understated and current year‘s profit is overstated.
(C) Previous year‘s profit is overstated and current year‘s profit is understate
(D)
Which of the following statements is correct about Trial Balance?
(A) The Trial Balance is prepared after preparing the Profit and Loss Account
(B) The Trial Balance shows only balances of Assets and Liabilities
(C) The Trial Balance shows only nominal account balances
(D) The Trial Balance has no statutory importance from the point of view of law
The adjustment to be made for income received in advance is:
(A) Add income received in advance to respective income and show it as a liability
(B) Deduct income received in advance from respective income and show it as a liability
(C) Add income received in advance to respective income and show it as asset
(D) Deduct income received in advance from respective income and show it as an asset in the Balance Sheet
Which of the following statements is true?
(A) If a Trial Balance tallies, it always means that none of the transactions has been completely omitted
(B) A Trial Balance will not tally if a transaction is omitted
(C) A customer to whom goods have been sold on credit cannot avail himself of a cash discount
(D) A credit balance in the Pass Book indicates excess of deposits over withdrawals
Closing stock in the Trial Balance implies that______________?
(A) It is already adjusted in the opening stock
(B) It is adjusted in the Purchase A/c
(C) It is adjusted in the Cost of Sale A/c
(D) It is adjusted in the Profit &Loss A/c
Journal proper is meant for recording_____________?
(A) Credit purchase of fixed assets
(B) Return of goods
(C) All such transactions for which no special journal has been kept by the business
(D) None of these