The preparation of a trial balance is for:
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Solution
For locating clerical errors, trial balance is prepared.
Contra entries are passed only when
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Solution
In three column cash book, contra entries are passed.
Which of the following types of information are found in subsidiary ledgers, but not in the general ledger?
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Solution
Quantity of a particular product sold during the period will not be shown in general ledger.
In Double Entry System of Book-keeping every business transaction affects:
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Solution
Double entry system affects two accounts.
Which account is the odd one out?
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Solution
Inventory of raw materials is odd one out. All other three are fixed assets.
Change in accounting estimate means
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Solution
Change in accounting estimate means differences between certain parameters estimated (or restimated) and actual results achieved.
It is essential to standardize the accounting principles and policies in order to ensure
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Solution
Accounting principles, policies are standardized to ensure transparency, consistency and comparability.
The determination of expenses for an accounting period is based on the principle of
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Solution
Expenses for an accounting period are recognised on ‘Matching’ principle.
Revenue from sale of products, is generally, realized in the period in which
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Solution
Revenue from products’ sale is realized at the time of sale.
Which of the following is not a sub-field of accounting?
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Solution
Book keeping is not a sub-field of Accounting.