A 'Capital Reserve' can be used for: MCQ with Answer and Explanation
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Question #1
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Interest on a bank loan accrued but not paid at year-end is shown in the final accounts by:
Correct Answer: Option A
Explanation:
Accrued interest is an expense for the year (Debit P&L) and an outstanding liability (Added to loan or shown separately in Balance Sheet).
Accrued interest is an expense for the year (Debit P&L) and an outstanding liability (Added to loan or shown separately in Balance Sheet).
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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The final step in the accounting cycle is:
Correct Answer: Option B
Explanation:
The accounting cycle ends with the preparation of financial statements from the trial balance and adjustments.
The accounting cycle ends with the preparation of financial statements from the trial balance and adjustments.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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The 'Dual-purpose Test' in audit is:
Correct Answer: Option A
Explanation:
A single procedure can provide evidence on both controls and substantive assertions.
A single procedure can provide evidence on both controls and substantive assertions.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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