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Correct answer
B. Written down to zero or its scrap value
Explanation
Written down to zero or its scrap value is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
C. $2000 will be credited in cash book
Explanation
$2000 will be credited in cash book is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
A. Differential costs
Explanation
Differential costs is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
B. Both A and C above
Explanation
Enhancement of earning capacity can be by way of replacement of worn out or damaged parts which retarded the earning capacity and increase in the working capacity increases the earning capacity of the asset.
Correct answer
A. There are not sufficient funds in your account
Explanation
There are not sufficient funds in your 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. Depreciation
Explanation
Depreciation is the accounting process of gradually converting the cost of a fixed asset into expenses over its useful life. Depreciation is an accounting method that spreads out the cost of a tangible asset over its useful life. It’s used to match costs to revenues. Depreciation occurs because assets decline in value over time. Depreciation expense is the portion of the cost of an asset that has been depreciated for a single period. Depreciation is part of the accounting process for fixed assets, which also includes: Entering the asset’s purchase cost Periodically depreciating the cost over the asset’s useful life Eventually disposing of the asset and removing it from the books Depreciation, depletion, and amortization (DD&A) is an accounting technique that companies use to gradually expense various different resources of economic value over time.
Correct answer
C. Either B or C above
Explanation
When Bad debts are recovered the entry is Cash A/c …………………………………………………… Dr. To Bad debts recovered A/c This A/c can either be transferred to P& L A/c or Provisions for Doubtful Debts A/c.
Correct answer
A. Commercial cost
Explanation
Commercial cost is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
D. Creditor of the business
Explanation
Creditor of the business is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.