If Cash=$1000 inventories=$4000 Debtors=$5000 fixed assets=? Capital+Liabilities=$15000 What is the Amount of total assets?
A$10,000
B$5000
C$15,000
D
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Correct answer
B. $5000
Explanation
$5000 is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
C. Allocation
Explanation
AS-6 on depreciation accounting defines ‗depreciation‘ as the measure of wearing out, consumption or other loss of a value of a depreciable asset arising from use, effluxion of time or obsolescence through technology and market changes. Depreciation is allocated so as to charge a fair proportion of the depreciable amount in each accounting period during the expected useful life of the asset. Depreciation includes amortization of assets whose useful life is predetermined.
Correct answer
D. Putting the new asset in working condition
Explanation
Putting the new asset in working condition is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
C. Bank overdraft
Explanation
Bank overdraft is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
A. Cash as per cash book with bank balance as per bank pass book
Explanation
Cash as per cash book with bank balance as per bank pass book is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
D. Credit balance
Explanation
Credit balance is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
C. Cash column
Explanation
Cash column is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
D. Prepaid expenses
Explanation
Prepaid expenses is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
C. It is adjusted in the Purchase A/c
Explanation
Closing Stock appearing in the Trial Balance implies that it has already been adjusted in the Purchases Account and hence appears as an asset in the Balance Sheet.
Correct answer
C. Narration
Explanation
Narration is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.