Prepaid income is transferred to:
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
Any amount due but unpaid at the end of the financial year must be:
Less to the amount paid
Not entered into the account
Added to the amount paid
Should be added to balance sheet
If an amount is paid during the year, how will be you post that in cash book?
Debit
Credit
Both debit and credit
Not affected
Amount unpaid
Amount paid
Amount paid in the last year
Amount going to be paid in the next year
Any expenses during the accounting period relating to the next accounting period is known as:
Paid in advance
Paid in loss
Not paid
Matching principle
Credit the income account and debit the cash book with the amount received. This is applicable to:
During the year
At the year ended
At the financial year end
It is not applicable
At the year end, debit the expenses account with any amount due but unpaid, carry down as a:
Both debit & credit
Either debit or credit
The amount due as unpaid at the end of the accounting period is known as:
Expenses
Accrued expenses
Income
Loss
