Subscriptions received in advance are
Included in the income and expenditure account
Not included in the receipts and payment account
Shown as a current asset in the balance sheet
Shown in the Balance Sheet as a current liability
Correct answer is D
An amount received in advance against which the services are yet to provide is a balance sheet item. Any advance subscription is a liability and to be shown in balance sheet
Which of the following is not part of the double entry system?
Trading account
Profit and loss account
Appropriation account
Balance sheet
Correct answer is D
No explanation has been provided for this answer.
Which of the following is the equivalent of the receipts payment accounts?
Income and expenditure accounts
Cash book
Subscriptions account
Profit and loss account
Correct answer is B
Following are the characteristics of receipt and payment account:
From the above characteristics we can say the receipt and payments account is equivalent to the cash book which is used in recording all cash transactions
D11,250
D8,750
D3,750
D1,250
Correct answer is C
net profit = 0.1 x 12500 = 1250
net profit = gross profit - expenses
Therefore; net profit + expenses = gross profit
1250 + 2500 = 3750
A service which a firm has enjoyed, but has not yet been paid for is
Accrued expense
Preliminary expense
Prepaid expense
Overhead expense
Correct answer is A
No explanation has been provided for this answer.