Subscription prepared by members is recorded in the balance sheet of a club as a
Current liability
Current asset
Fixed asset
Long term liability
Correct answer is A
No explanation has been provided for this answer.
In the absence of an agreement, partners share profits
Based on activeness of a partner
Based on capital contribution
On patronage basis
On equal basis
Correct answer is D
No explanation has been provided for this answer.
As a basis for assessing future usage, fixed assets are shown at
Selling price
Cost price
Cost plus residual value
Net book value
Correct answer is B
No explanation has been provided for this answer.
Sales day book
Cash book
Purchase day book
General journal
Correct answer is B
No explanation has been provided for this answer.
Which of the following is a prime cost?
Royalty
Salary
Commission
Discounts allowed
Correct answer is A
Prime cost is the direct cost incurred during production. Royalty is paid on production basis and on sales basis. If it is paid on production basis then it is considered direct expense (prime cost) and debited to Trading Account.