Which of the following items is a current liability?
Stock of raw material
Cash in hand
Bills payable
Cash at bank
Correct answer is C
Current liabilities are amounts due to be paid to creditors within twelve months.
The following are common examples of current liabilities:
In accounting context, purchases refer to
Goods bought and paid only
Goods bought for resale only
Goods bought on credit only
Goods bought to be used in the firm
Correct answer is B
Purchase are goods or stocks bought for the purpose of resselling.
Materiality concept
Dual aspect concept
Matching concept
Money measurement concept
Correct answer is B
Dual Aspect Concept, also known as Duality Principle, is a fundamental convention of accounting that necessitates the recognition of all aspects of an accounting transaction. Dual aspect concept is the underlying basis for double entry accounting system.
Which of the following items of expense involves actual cash payment?
Discounts allowed
Provision for depreciation
Carriage outwards
Allowance for doubtful debts
Correct answer is C
Carriage refers to the cost of transporting goods into a business from a supplier, as well as the cost of transporting goods from a business to its customers. Carriage outwards is the shipping and handling costs incurred by a company that is shipping goods to a customer.
Bank reconciliation statement is prepared to reconcile the differences between
Bank statement and credit transfers
Cash book and bank transfers
Bank statement and cash transfers
Cash book and bank statement
Correct answer is D
A bank reconciliation is used to compare your records to those of your bank, to see if there are any differences between these two sets of records for your cash transactions. The ending balance of your version of the cash records is known as the book balance, while the bank's version is called the bank balance.