Which accounting system violates the matching principle? MCQ with Answer and Explanation
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Question #1
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In partnership accounts, Garner vs. Murray rule applies to the situation of:
Correct Answer: Option B
Explanation:
The rule dictates that if a partner becomes insolvent, the capital deficiency is borne by solvent partners in the ratio of their last agreed capital.
The rule dictates that if a partner becomes insolvent, the capital deficiency is borne by solvent partners in the ratio of their last agreed capital.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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The term 'Debtors' represent:
Correct Answer: Option D
Explanation:
Debtors are persons/entities who owe money to the business for goods/services provided on credit.
Debtors are persons/entities who owe money to the business for goods/services provided on credit.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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Which of the following is a variable cost?
Correct Answer: Option B
Explanation:
Direct material cost is a variable cost because it varies directly and proportionately with the level of production.
Direct material cost is a variable cost because it varies directly and proportionately with the level of production.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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