Trading and profit and loss account prepaid for:
Definite time
Indefinite time
No time
Depends
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
If balance represents an amount of owing, where it will be included in the balance sheet?
Fixed liability
Current liability
Contingent liability
Asset
A balance represents the short term benefits. Where will it come in the balance sheet?
Fixed asset
Current asset
Intangible asset
Where will the balance of the income account be present in the balance sheet?
Prepaid income is transferred to:
Trading account
Profit and loss account
Trading and profit and loss account
Income and expenditure
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 by the amount paid
Matching principle
Trading & profit & loss account is the practical application of:
Going concern concept
Business entity concept
Continuous concept
Matching concept
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
