If the Trial Balance totals do not match, the difference is temporarily transferred to: MCQ with Answer and Explanation
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Question #1
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S1: Revaluation Account is prepared at the time of admission of a partner. S2: Revaluation Account is prepared at the time of retirement of a partner. Which statement(s) is/are correct?
Correct Answer: Option D
Explanation:
A Revaluation Account is prepared whenever there is a change in the constitution of the firm, including admission, retirement, or death of a partner, to adjust the values of assets and liabilities. Both statements are correct.
A Revaluation Account is prepared whenever there is a change in the constitution of the firm, including admission, retirement, or death of a partner, to adjust the values of assets and liabilities. Both statements are correct.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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A 'Credit Note' is issued to:
Correct Answer: Option C
Explanation:
Credit note is sent by seller to buyer when goods are returned or an allowance is granted, reducing the amount receivable.
Credit note is sent by seller to buyer when goods are returned or an allowance is granted, reducing the amount receivable.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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A reserve created out of normal operating profits is called a:
Correct Answer: Option D
Explanation:
Revenue reserves are built from day-to-day operational net profits and can be utilized for distributing dividends.
Revenue reserves are built from day-to-day operational net profits and can be utilized for distributing dividends.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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