In cash system of accounting, entries are recorded
A. |
When income is earned by a business of expenditure is incurred by it
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B. |
On the basis of actual receipt of cash and actual payment of cash
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C. |
When order for goods to be purchased is placed and order for goods to be sold is received
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D. | All of the above |
Option: B Explanation : Click on Discuss to view users comments. |
What are the advantage of double entry system?
A. | Arithmetical accuracy of records |
B. | Lesser possibility of fraud |
C. | Helps users of accounting information |
D. | All of the above |
Option: D Explanation : Click on Discuss to view users comments. |
A. |
By debiting bad debts account and crediting sundry debtors account
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B. | By debiting to bad debts only |
C. | By debiting to sundry debtors only |
D. |
By debiting to sundry debtors account and crediting to bad debts account
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Option: A Explanation : Click on Discuss to view users comments. |
Bills of exchange are shown under the head
A. | Current Assets |
B. | Loans and Advances |
C. | Fixed Assets |
D. | Miscellaneous expenditures |
Option: B Explanation : Click on Discuss to view users comments. |
A. | 1 and 2 |
B. | 1 and 3 |
C. | 2 and 3 |
D. | 1,3 and 4 |
Option: C Explanation : Click on Discuss to view users comments. |