Closing stock appearing outside the trial balance is shown in: MCQ with Answer and Explanation
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Question #1
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Which ratio is a strict measure of a firm's immediate ability to pay off current liabilities?
Correct Answer: Option A
Explanation:
The Quick Ratio excludes inventory and prepaid expenses, comparing only highly liquid assets (cash, receivables) to current liabilities.
The Quick Ratio excludes inventory and prepaid expenses, comparing only highly liquid assets (cash, receivables) to current liabilities.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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The 'Correction of an Error' (Ind AS 8) is done:
Correct Answer: Option C
Explanation:
Material prior period errors are corrected retrospectively.
Material prior period errors are corrected retrospectively.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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Which account is debited when goods are distributed as free samples?
Correct Answer: Option D
Explanation:
Goods distributed as free samples are treated as a promotional expense, so the Advertising or Sales Promotion account is debited.
Goods distributed as free samples are treated as a promotional expense, so the Advertising or Sales Promotion account is debited.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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