Which of the following errors will affect the agreement of the trial balance?
Error of original entry
Error of commission
Error of transposition
Error of omission
Correct answer is C
A transposition error is a simple error of data entry that occurs when two digits that are either individual or part of a larger sequence of numbers are accidentally reversed (transposed) when posting a transaction.
The financial statement which is an expression of the accounting equation is the
Trading account
Profit and loss account
Balance sheet
Statement of cash flow
Correct answer is C
A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity at a specific point in time, and provides a basis for computing rates of return and evaluating its capital structure.
When a fixed asset is disposed off, the accounting entries to write off the asset are Debit
Profit and loss account; credit asset disposal account
Asset disposal account; credit profit and loss account
Asset disposal account, credit asset account
Profit and loss account; credit provision for depreciation account
Correct answer is C
How to record the disposal of assets
Debts that a firm is unable to recover are debited to bad debts account and credited to
Suppliers account
Sales account
Customers account
Cash account
Correct answer is A
The entry to write off a bad debt account affects only balance sheet accounts: a debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable.
Accounts receivable is money owed to a company by its debtors.
A loan to a company under the company's seal is
Fixed deposit
Mortgage
Bond
Debenture
Correct answer is B
Some common uses of company seals include:
– Company resolutions
– Important Contracts and Deeds
– Property transfer (landed in most cases) and execution of land contracts.
– Execution of loan documents, mortgages, and guarantees.
– Occasions where a document will be utilized outside the country.
In this case a loan to a company under the company seal is a mortgage