Final accounts – Test 4

In ________, approach the assets are stated in balance sheet in the order in which they can be easily converted into cash and the liabilities in the order in which they have to be paid off.

Deferred credits will appear on the balance sheet with the-

Arrange the following assets as per liquidity order.

I.   Cash & Bank

II.  Building

III. Investment

IV.  Stock

Select the correct answer from the options given below-

Arrange the following assets as per liquidity order.

I. Debtors

II. Building

III. Cash & Bank

IV. Stock

Select the correct answer from the options given below-

Which of the following statement is true?

Arrange the following assets as per permanence order.

I. Cash & Bank

II. Building

III. Investment

IV. Stock

Select the correct answer from the options given below-

Withdrawals by proprietor would-

_________are those which are acquired for long use in the business and not meant for resale.

Which of the following statement is/are true?

(i) Drawings account is a nominal account

(ii) Capital account is a real account

(iii) Rent account is a nominal account

(iv) Outstanding salaries account is a nominal account

(v) Patents account is a personal account

Select the correct answer from the options given below-

________ are valueless assets but shown in the balance sheet on assets side e.g. preliminary expenses.

Opening entries are generally passed through-

________are those that are meant to be converted into cash in short term.

Closing stock in the Trail Balance implies that-

___________ are those fixed assets which have a fixed content, like coal mine; the value of the asset goes down as the contents are taken out.

Bad debts recovered account will be transferred to-

__________ which can be immediately be converted into cash, such as Government Securities.

Cost of goods sold excludes-

__________ are those fixed assets which cannot be seen or touched or felt.

Payments received in advance from a customer for a contract can be-

Goodwill is-

Which of the following is not classified as inventory in the financial statements?

__________is a statement of debit & credit balance while _________ is a statement of assets and liabilities.

Which of the following statements is/are Not correct?

Which of the following statement contains all the types of account i.e. personal, real & nominal account?

If actual bad debts are more than the provision for bad debts, then there will be a-