Practice Test 67
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The benefit from the expenditure is spread for not more than one year is called

  • Solution

    Revenue expenditures are for one year only.

When preparing a Bank reconciliation statement, if you start with balance as per cash book, then dividends directly collected by bank but not yet entered in cash book within the period are ____________

  • Solution

    Dividends directly collected by bank will be added in the given case.

Present liability of uncertain amount which can be measured reliably by using a substantial degree of estimation is termed as _______

  • Solution

    Present liability of uncertain amount is provision, if measured reliably by using estimation.

Prepaid insurance given in trial balance is recorded in __________

  • Solution

    Prepaid insurance given in trial balance is recorded in Balance Sheet.

In case of credit balance, the words _______ are written on the credit side.

  • Solution

    ‘By balance b/d’ are written on cr. side in case of cr. balance.

The main causes of depreciation include:

  • Solution

    Main cause of depreciation include effluxion of time, obsolencence and physical wear & tear.

Inventory is valued at

  • Solution

    Inventory is valued at cost or market value whichever is less.

According to the Companies Act, 2013, Balance Sheet of a company is prepared as per

  • Solution

    Balance sheet is prepared as per Part I of Schedule III as per Companies Act, 2013.

Dividends are usually paid as a percentage of ______

  • Solution

    Dividends are paid as percentage of paid up capital.

Loss on issue of debentures for 5 years is treated as ______

  • Solution

    Loss on issue debentures for 5 years is other non-current asset.

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FUNDAMENTALS OF ACCOUNTING
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