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Correct answer
A. Deduct prepaid expenses from respective expenses and show it as an asset
Explanation
Prepaid expense is an 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. Petty cash column
Explanation
Petty 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
A. Book Keeping
Explanation
Book Keeping is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
D. No flow
Explanation
No flow is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
A. Debit balance
Explanation
Debit balance is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
D. Assets
Explanation
Assets is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
B. Accounts Receivable
Explanation
An accounts receivable is not an intangible asset. It is the amount that the business has to receive from its debtors. The other assets mentioned in alternatives a, b, and d- trademark, franchises and secret processes are intangible assets. Hence, the correct answer is C.
Correct answer
B. Net working capital
Explanation
Net working capital is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
A. Cost price or Market price whichever is lower
Explanation
[Hints: D. Para 5, of AS-2 states that inventories should be valued at the lower of cost and net realizable value.]
Correct answer
B. (ii),(iii),(iv) and (v) above
Explanation
(ii),(iii),(iv) and (v) above is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.