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
The amount paid in advance is known as:
Prepaid
Postpaid
Postponed
Preponed
Any amount due but unpaid at the end of the final must be:
Less to the amount paid
Not entered into the account
Added to the amount paid
Should be added to balance sheet
Prepaid income is transferred to which account?
Trading account
Profit and loss account
Trading and profit and loss account
Income and expenditure
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
Trading and profit and loss account prepared for:
Definite time
Indefinite time
No time
Depends
Trading & profit & loss account is the practical application of:
Going concern concept
Business entity
Continuous
Matching
In the profit and loss account, an accused expenses is added to the:
Total paid
Total income
Total loss
Total balance
An amount is paid during the year. How will you post that in cash book?
Debit
Credit
Both debit and credit
Not affected