When a business incurs labour cost in installing a fixed asset, the cost is treated as
Additional cost to the asset
Business wages and salaries
Installation cost of the asset
Business cost of the asset
Correct answer is A
No explanation has been provided for this answer.
Debit generator account and credit cash account
Debit purchases account and credit cash account
Debit cash accounts and credit purchases account
Debit cash account and credit generator account
Correct answer is B
The question says 'an electronic shop bought generators'. Meaning it is for resale and not for office or personal use.
This means cash account will be credited because money has gone out of the business for the purchase of generators. Since the question didn't say the goods were paid for by cheque, we are crediting the cash column, if it was paid by cheque, the bank column would be credited instead.
On the other hand, the purchase account (stock) will be debited because goods have come into the company as a result of the purchase.
Always remember this simple accounting entry; debit all receivables (purchases account receiving), credit all payment (cash account paying out).
Accounting information is used by investors and creditors of a company to predict
Future cash flows of the company
Future tax payments of the company
Potential merger candidates for the company
Appropriate remunerations for the company's staff
Correct answer is A
No explanation has been provided for this answer.
Materiality
Objectivity
Consistency
Conservatism
Correct answer is D
No explanation has been provided for this answer.
Passing of entries
Consistency convention
Matching concept
Adjusting for revenue
Correct answer is C
No explanation has been provided for this answer.