Net profit of a sole proprietor is transferred to the
Profit and loss account
Profit and loss appropriation account
Capital account
Drawings account
Correct answer is C
No explanation has been provided for this answer.
Goods returned to the supplier is recorded in the accounts as: debit
Sales Returns Account; credit Suppliers' Account
Purchases Returns Account; credit Supplier's Account
Supplier's Account; credit Purchases Returns Account
Supplier's Account; credit Purchases Account
Correct answer is C
No explanation has been provided for this answer.
Where partners maintain a fluctuating capital account, partners' share of profit is credited to
Capital account
Profit and loss appropriate account
Current account
Profit and loss account
Correct answer is A
No explanation has been provided for this answer.
A limitation of the money measurement concept is that
it results in inaccurate financial statements
financial statement is not easily understood
important non-monetary activities are not reported
the reports are not comparable to that of other businesses
Correct answer is C
No explanation has been provided for this answer.
An amount set aside to meet expenses whose value is not certain is a
Reserve
Liability
Provision
Prepayment
Correct answer is C
No explanation has been provided for this answer.