The process of using sales ledger balance to cancel off purchases ledger balance is
Balancing
Set off
Reconciliation
Cancelling
Correct answer is B
A set-off clause is a legal clause that gives a lender the authority to seize a debtor's deposits when they default on a loan. A set-off clause can also refer to a settlement of mutual debt between a creditor and a debtor through offsetting transaction claims.
Current liability
Expenses
Income
Current asset
Correct answer is C
The effects of provision for doubtful debts in financial statements may be summed up as follows:
(1) Income Statement: Only change (increase or decrease) in provision for doubtful is shown in the income statement. When there is an increase, then its considered an expense which will be (deducted from profit) and when it decreases, then it is an income and will be (added in profits).
Which of the following is not a method of depreciating fixed assets?
Revaluation
Straight Line
Diminishing balance
Obsolescence
Correct answer is D
Depreciation methods
The cost of putting goods into a saleable condition is charged to
Balance sheet
Trial balance
Profit and loss account
Trading account
Correct answer is C
Profit and loss account is an account in the books of an organization to which incomes and gains are credited and expenses and losses debited, so as to show the net profit or loss over a given period. It includes the cost of materials both direct and indirect that were used up in the production process to convert the product into a saleable and consumable goods.
Unpresented cheques are cheques_________
That have been recorded in the cash book but not by the bank
That have been received by the bank, but not recorded in the cash book
Returned by the bank
Written but not handed over to customers
Correct answer is A
Unpresented cheques are cheques which have not yet cleared through the banking system. It is a term used in the preparation of a bank reconciliation statement. For example, if a business writes a cheque, it will post it to its cash book that day and then send it on to its supplier.