The 'Receipts and Payments Account' is prepared by: MCQ with Answer and Explanation
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Question #1
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Assertion (A): Under Ind AS 16, land and buildings are separable assets and are accounted for separately. Reason (R): Land generally has an infinite useful life, whereas buildings have a limited useful life. Choose the correct option.
Correct Answer: Option A
Explanation:
Ind AS 16 requires separate accounting for land and buildings because they have different useful lives. Land is usually not depreciated (infinite life), while buildings are depreciated over their finite useful lives. R correctly explains A.
Ind AS 16 requires separate accounting for land and buildings because they have different useful lives. Land is usually not depreciated (infinite life), while buildings are depreciated over their finite useful lives. R correctly explains A.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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A partnership deed is:
Correct Answer: Option A
Explanation:
Partnership deed is not compulsory but advisable to avoid disputes. Partnership can exist based on oral agreement.
Partnership deed is not compulsory but advisable to avoid disputes. Partnership can exist based on oral agreement.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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A company's preliminary expenses written off is shown in:
Correct Answer: Option B
Explanation:
Written off portion is charged to P&L Account as an expense.
Written off portion is charged to P&L Account as an expense.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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