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
Any expenses during the accounting period relating to the next accounting period is known as:
Paid in advance
Paid in loss
Not paid
Prepaid income is transferred to which account?
Trading account
Profit and loss account
Trading and profit and loss account
Income and expenditure
Credit the income account and debit the cash book with the amount received. This is applicable:
During the year
At the year ended
At the financial year end
Its not applicable
An amount is paid during the year. How will you post that in cash book?
Debit
Credit
Both debit and credit
Not affected
A balance represents the short term benefits, where will it come in the balance sheet?
Fixed asset
Current asset
Intangible asset
Asset
In the profit and loss account, an accused expenses is added to the:
Total paid
Total income
Total loss
Total balance
The amount paid in advance is known as:
Prepaid
Postpaid
Postponed
Preponed
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
Trading and profit and loss account prepared for:
Definite time
Indefinite time
No time
Depends
