Where will the balance of the income account be present in the balance sheet?
Current asset
Current liability
Fixed asset
Contingent liability
Necessary to make adjustments to the accounting record is :
Financial position of the business
Present a more accurate view of the profit and loss of the business
Both A & B
Mandatory by law
Prepaid income is transferred to which account?
Trading account
Profit and loss account
Trading and profit and loss account
Income and expenditure
To complete double entry, the amount paid in advance balance is:
Brought down in the debit side of the ledger account
Brought down in the credit side of the ledger account
Brought down in the debit side of the journal
Brought down in the credit side of the journal
At the year end, debit the expenses account with any amount due, but unpaid carry down as a:
Debit
Credit
Both debit & credit
Either debit or credit
An amount is paid during the year. How will you post that in cash book?
Both debit and credit
Not affected
Any expenses during the accounting period relating to the next accounting period is known as:
Paid in advance
Paid in loss
Not paid
The amount paid in advance is known as:
Prepaid
Postpaid
Postponed
Preponed
Any amount paid during the financial year relating to a future accounting period must be:
Added from the amount paid
Deducted from the amount paid
Multiply with the amount paid
Divided the amount paid
At the year end, credit the expenses account with any amount paid in advance and carry down as a:
Credit balance
Debit balance
Balance sheet
