The current assets less current liabilities is
Working capital
Capital employed
Fluctuating capital
Fixed capital
Correct answer is A
The working capital in simple terms is the money used in the day-to-day running of the business.
It is the difference between a company's current assets—such as cash, accounts receivable, inventories of raw materials, and finished goods—and its current liabilities, such as accounts payable and debts.
Principle
Commission
Original entry
Complete reversal
Correct answer is B
Error of commission is an error that occurs when doing something wrong, such as including a wrong amount or including an amount in the wrong place.
For example, money that has been received from a customer is credited properly to the accounts receivable account, but to the wrong customer.
The amount payable if payment is made on the 40th day is...........
88,920
84,240
80,028
72,025
Correct answer is A
60 x 1560 = 93600
Cash discount = 5/100 x 93600 = 4680
93600 - 4680 = 88920
The cash discount allowed on the 50th day is?
9,360
8,424
4,680
4,212
Correct answer is C
Unit cost = 60
Quantity = 1560
60 x 1560 = 93600
Cash discount = 5/100 x 93600 = 4680
A reduction n price to encourage prompt payment is........
Trade discount
Quantity discount
Cash discount
Seasonal discount
Correct answer is C
Cash discounts refer to an incentive that a seller offers to a buyer in return for paying a bill before the scheduled due date. The seller would typically reduce a certain amount from the total amount owed to encourage the buyer to make payment faster.