In the modern approach, an increase in asset is: MCQ with Answer and Explanation

In the modern approach, an increase in asset is:

A. Debited

B. Credited

C. No entry

D. Transferred

Answer: Option A

In modern equation approach, increase in asset is debited; decrease credited.

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

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Question #1 Report Error

On attaining majority, a minor admitted to benefits has the option to become a partner within:

A. 2 years

B. 6 months

C. 1 year

D. 3 months

Correct Answer: Option B

Explanation:
Within 6 months of attaining majority, he must decide whether to become a partner or not.

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

Question #2 Report Error

Under the diminishing balance method, depreciation is calculated on:

A. Original cost

B. Written down value

C. Scrap value

D. Market value

Correct Answer: Option B

Explanation:
Diminishing balance method applies the rate to the reducing book value each year.

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

Question #3 Report Error

The 'Insurance Regulatory and Development Authority of India' (IRDAI) regulates:

A. Pension

B. Capital markets

C. Insurance sector

D. Banking

Correct Answer: Option C

Explanation:
IRDAI is the insurance sector regulator.

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