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Correct answer
A. Original
Explanation
Original is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
C. Compound entry
Explanation
Compound entry 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 discount
Explanation
Cash discount is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
C. Reduce
Explanation
Reduce is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
A. Both (i) and (iii) above
Explanation
In the books of the drawer, the accounting treatment involved on receipt of a bill of exchange duly accepted by the drawee is debit Bills Receivable Account and credit Drawee‘s Account .i.e., the combination of statements in (i) and (iii) alternative C. is the correct answer. The other alternatives are incorrect because the combination of one correct answer with the statement of incorrect answer. Drawee‘s Account is debited (ii) as soon as a sale is made or any advances is made and Drawee‘s Account is not debited when the bill of exchange is accepted and sales is credited (iv) when the sale is made and not at the time of acceptance of bill of exchange. Thus, the alternatives A., statement (i) B., combination of (ii) and (iv) D. combination of (i) and (iv) are incorrect.
Correct answer
A. Communication of financial information
Explanation
Communication of financial information is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
B. Masood’s account
Explanation
Masood’s account is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
A. $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
D. Payments
Explanation
Payments is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
B. Sales journal
Explanation
Sales journal is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.