The assets which have some market value are called ____________?
AReal assets
BFictitious assets
CFixed asset
D
Study & Learn
Read every question, see the correct answer, and understand the explanation at your own pace. Study mode has no timer and no negative marking.
Correct answer
A. Real assets
Explanation
Real assets is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
D. Intangible Asset
Explanation
Intangible Asset is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
B. Postage & Stamps
Explanation
Postage & Stamps is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
C. Purchase return
Explanation
Purchase return is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
C. Future economic benefits
Explanation
Future economic benefits is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
A. Current Asset
Explanation
Prepaid insurance is the expense relating to the next accounting period but has been paid in the current accounting period and hence it is a current asset. The adjustment would be to deduct it from the respective expense account in the P&L A/c and show it as a current asset in the Balance Sheet.
Correct answer
A. Assets are to be shown in the Balance Sheet at the realizable value
Explanation
fixed assets are to be shown in the Balance Sheet at their actual cost.
Correct answer
C. Shown on the assets side of the Balance Sheet
Explanation
Unexpired insurance or prepaid insurance must be shown on the assets side of the Balance Sheet, because it is an asset. It cannot be shown on the liabilities side of the Balance Sheet. It cannot be debited to Profit & Loss A/c. Also it cannot be credited to Profit & Loss A/c. Hence D. is true.
Correct answer
C. 60,000
Explanation
60,000 is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
D. Credited in the cash book
Explanation
Credited in the cash book is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.