A 'Rectifying Entry' is passed to: MCQ with Answer and Explanation

Question Report Error

A 'Rectifying Entry' is passed to:

A. Record opening entries

B. Correct errors in accounts

C. Adjust depreciation

D. Close the books

Answer: Option B

Solution (By JKExamLibrary)

Rectifying entries correct errors found after posting.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Practice More Accountancy and Book Keeping Questions

Question #1 Report Error

The 'Form 10IE' is to be filed for:

A. GST registration

B. Tax audit

C. Opting for new income tax regime

D. TDS return

View Answer & Solution Discuss

Correct Answer: Option C

Explanation:
Form 10IE is filed by individuals/HUFs to opt for the new tax regime.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2 Report Error

The term 'Liquidity Ratio' includes:

A. Current Ratio and Quick Ratio

B. Stock Turnover Ratio and Debtors Turnover Ratio

C. Gross Profit Ratio and Net Profit Ratio

D. Debt-Equity Ratio and Proprietary Ratio

View Answer & Solution Discuss

Correct Answer: Option A

Explanation:
Liquidity ratios measure the short-term solvency of a firm and include the Current Ratio and the Quick (or Acid-Test) Ratio.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3 Report Error

Under the Single Entry System, if opening capital is Rs 1,00,000, closing capital is Rs 90,000, and drawings are Rs 30,000 (no fresh capital), the profit is:

A. Rs 40,000

B. Rs 20,000

C. Rs 10,000 Loss

D. Rs 20,000 Loss

View Answer & Solution Discuss

Correct Answer: Option B

Explanation:
Profit = Closing Cap + Drawings - Opening Cap = 90,000 + 30,000 - 1,00,000 = Rs 20,000.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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