The compensation paid by the borrower of fund to lender, from the borrower point of the cost of borrowing fund is called?
AAll of the above
BInterest Rate
CRequired rate of return
D
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Correct answer
B. Interest Rate
Explanation
Interest Rate is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
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D. All credit purchases of goods
Explanation
All credit purchases of goods is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
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C. The retained earnings was overstated during 2011-2012 and retained earnings will be understated during 2012-2013
Explanation
Closing Stock‘s overstatement increases the profit of the current period and results in the increase of retained earnings relating to the current accounting period. It decreases the profit and thereby retained earnings of the next accounting period since the closing stock of the current accounting period becomes the opening stock of the next accounting period, the overstatement of which has the effect of decreasing the profits and retained earnings.
Correct answer
B. 0.65
Explanation
0.65 is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
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C. Balance c/d
Explanation
Balance c/d is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
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C. Sales – Cost of goods sold
Explanation
Sales – Cost of goods sold is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
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D. Rent A/c
Explanation
Rent A/c is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
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C. Identifying the transaction
Explanation
Identifying the transaction is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
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A. 4th July,2018
Explanation
Bill drawn on 1st April, 2018 payable after 3 months. The due date is 1st April, 2018 + 3 months + 3 days of grace = 4th July, 2018
Correct answer
C. They must be made after the adjusting entries but before the reversing entries
Explanation
Closing entries are required to transfer the nominal accounts to the Profit & Loss Account and the Trading account. Real accounts and personal account are not closed to Profit & Loss Account or Trading Account. Their balance is carried in the Balance Sheet and appears as opening Balance in the next accounting period.