If actual bad debts are more than the provision for bad debts, then there will be a_____________?

A. Credit balance of provision for bad debts account
B. Debit balance of provision for bad debts account
C. Debit balance of bad debts account
D. Debit balance of discount on debtors account

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

A. Finished goods
B. Work-in-process
C. Stores and spares
D. Advance payments made to suppliers for raw materials

Recent developments have made much of a company‘s inventory obsolete. This obsolete inventory should be?

A. Written down to zero or its scrap value
B. Shown in the balance sheet at its replacement cost
C. Shown in the balance sheet at cost, but classified as a non-current asset
D. Carried in the accounting records at cost until it is sold

If a company has contingent liabilities, they appear in the__________?

A. Balance sheet
B. Directors‘ report
C. Notes on account to balance sheet
D. Chairman‘s report

Investment in own share A/c appears in____________?

A. Asset side
B. Liability side
C. Netted from capital
D. Profit & loss a/c

Tax deducted at source A/c appears in___________?

A. Assets side
B. Liability side
C. Profit & loss a/c
D. Debited to capital a/c

Cost of goods sold excludes___________?

A. Opening stock
B. Carriage inward
C. Wages & salary
D. Postage & stamps

When a person purchasing goods on credit he becomes a_________in the books of the seller?

A. Debtor
B. Creditor
C. Defaulter
D. Offender

____________is also known as Appraisal system of depreciation?

A. Inventory system
B. Survey system
C. Annuity system
D. Insurance

Which of the following is not depreciated?

A. Building
B. Land
C. Plant and machinery
D. Office equipment