Cash discount allowed to a debtor should be credited to  
a) Discount account  
b)Customer’s account  
c) Sales account  
d) Cash account

1 Answer

Answer :

b)Customer’s account

Related questions

Description : Rent paid to landlord should be credited to a) Landlords account b) Rent account c)Cash account d) Expense account

Last Answer : c)Cash account

Description : If wages are paid for construction of business premises ______ A/c is credited and _____ A/c is debited. a) Wages, Cash b) Premises, Cash c) Cash, Wages d) Cash, Premises

Last Answer : d) Cash, Premises

Description : Value of goods withdrawn by the proprietor for his personal use should be credited to ____ a) Capital A/c b) Sales A/c c) Drawings A/c d) Purchases A/c

Last Answer : d) Purchases A/c

Description : Sales made to Mahesh for cash should be debited to________________ a) Cash account b) Mahesh Account c) Sales account d) Purchase account

Last Answer : a) Cash account

Description : When shares issued at premium which of the following account is credited? A. Share premium account B. Share first call account C. Share allotment account D. Share forfeited account

Last Answer : A. Share premium account

Description : Share holder are____________ A. Creditor Of Company B. Debtor of Company C. Owner of Company D. Members of Company

Last Answer : C. Owner of Company

Description : Debenture holder are____________ A. Creditor Of Company B. Debtor of Company C. Owner of Company D. Members of Company

Last Answer : A. Creditor Of Company

Description : When goods are returned that relate to a prior cash sale, a. the Sales Returns and Allowances account should not be used. b. the cash account will be credited. c. Sales Returns and Allowances will be credited. d. Accounts Receivable will be credited.

Last Answer : b. the cash account will be credited.

Description : In a perpetual inventory system, the amount of the discount allowed for paying for merchandise purchased within the discount period is credited to a. Merchandise Inventory. b. Purchase Discounts. c. Purchase Allowance.

Last Answer : a. Merchandise Inventory.

Description : A trader has made a sale of Rs.75,500 out of which cash sales amounted to Rs.25,500. He showed trade receivables on 31-3-2014 at Rs.25,500. Which concept is followed by him? a) Going concern b) Cost c) Accrual

Last Answer : c) Accrual

Description : who is credited with the idea of using punch cards to control patterns of a weaving machine? a. Pascal b. Hollerith c. Babbage d. Jacquard

Last Answer : d. Jacquard

Description : Provision for Income Tax is _____ A. Debited to P & L Appropriation A/c B. Debited to Profit and Loss A/c C. Debited to Treading A/c D. Credited to P & L Appropriation a/c

Last Answer : B. Debited to Profit and Loss A/c

Description : Which of the following is not a Real Account? a) Cash A/c b) Investments A/c c) Out standing rent A/c d) Purchases A/c

Last Answer : c) Out standing rent A/c

Description : The collection of a $900 account after the 2 percent discount period will result in a a. debit to Cash for $882. b. debit to Accounts Receivable for $900. c. debit to Cash for $900. d. debit to Sales Discounts for $18.

Last Answer : c. debit to Cash for $900.

Description : The collection of a $600 account within the 2 percent discount period will result in a a. debit to Sales Discounts for $12. b. debit to Accounts Receivable for $588. c. credit to Cash for $588. d. credit to Accounts Receivable for $588.

Last Answer : a. debit to Sales Discounts for $12.

Description : R. G. Ltd. purchased machinery from K.G. Company for a book value of Rs. 4,00,000. The consideration was paid by issue of 10%. Debenture of Rs. 100 each at a discount of 20%. The debenture account will be credited by– (A) Rs. 4,00,000 (B) Rs. 5,00,000 (C) Rs. 3,20,000 (D) Rs. 4,80,000

Last Answer : Answer: Rs. 4,00,000

Description : The Sales Returns and Allowances account does not provide information to management about a. possible inferior merchandise. b. the percentage of credit sales versus cash sales. c. inefficiencies in filling orders. d. errors in overbilling customers.

Last Answer : b. the percentage of credit sales versus cash sales.

Description : Reserve for discount on debtor has a __________ balance. 

Last Answer : Reserve for discount on debtor has a __________ balance. (a) credit (b) debit (c) nil (d) positive

Description : Provision for discount on debtors is calculated on the amount of debtors. a) Before deducting provision for doubtful debts. b)After deducting provision for doubtful debts. c) Before deducting actual debts and provision for doubtful debts. d) After adding actual bad and doubtful debts.

Last Answer : b)After deducting provision for doubtful debts.

Description : To issue shares on Discount mean A. Issue on face value of shares B. Issue on more than face value of shares C. Issue on less than face value of shares D. Initial public offer

Last Answer : C. Issue on less than face value of shares

Description : In case the depositor not made any transaction in PPF account. a) Rs 50/- will be collected for the one financial year b) Rs 100/- will be collected for no transaction was made for two financial ... of cash and credited into UCR c) Condone default is called to the defaulted deposit d) All the above

Last Answer : d) All the above

Description : Redirection fee for redirecting parcels should be collected a) In cash and credited in to account as such b) In cash and credited under UCR head c) Should be collected in the form of undefaced postage stamps d) Should be affixed on the parcel in the form of postage stamps and defaced

Last Answer : c) Should be collected in the form of undefaced postage stamps

Description : In preparing closing entries for a merchandising company, the Income Summary account will be credited for the balance of a. sales. b. merchandise inventory. c. sales discounts. d. freight-out.

Last Answer : b. merchandise inventory.

Description : When a seller grants credit for returned goods, the account that is credited is a. Sales. b. Sales Returns and Allowances. c. Merchandise Inventory. d. Accounts Receivable.

Last Answer : d. Accounts Receivable.

Description : Competitors, Customers and Public are part of A. macro environment B. micro environment C. business necessities D. none of these

Last Answer : B. micro environment

Description : Micro factors of external business environment does not include A. Competitors B. Customers C. Government Policies D. None of these

Last Answer : C. Government Policies

Description : As an incentive for customers to pay their accounts promptly, a business may offer its customers a. a sales discount. b. free delivery. c. a sales allowance. d. a sales return.

Last Answer : a. a sales discount.

Description : Which of the following will improve a company's working capital management position? A. An increased level of bad debts B. An increase in the credit period allowed by suppliers C. An increased debtor ... D. An increase in the stock turnover period E. An increase in the length of the production

Last Answer : B. An increase in the credit period allowed by suppliers

Description : A cash discount is an incentive allowed for the speedy recovery of income.

Last Answer : State whether the following statement are true or false with reason : A cash discount is an incentive allowed for the speedy recovery of income.

Description : One is entitled to initiate insolvency resolution of a corporate debtor when the corporate debtor __________. a) does not have enough liquid cash to continue operations as a going concern b) has failed to ... debt when due and payable c) has ceased to be a going concern d) has negative net worth

Last Answer : b) has failed to repay a debt when due and payable

Description : Cash A/c is a ________ A/c. a) Personal b) Real c) Nominal d) None

Last Answer : b) Real

Description : Cash a/c is a ______ a) Real a/c b) Nominal c) Personal d) None

Last Answer : a) Real a/c

Description : Fixed assets are held by business for _____ a) Converting into cash b) Generating revenue c) Resale d) None of the above

Last Answer : b) Generating revenue

Description : Risk in capital budgeting implies that the decision maker knows _ of the cash flows. A. Variability B. Certainty C. Probability D. None of these

Last Answer : C. Probability

Description : Bonus shares can be issued by a company A. Out of the Reserves created by revaluation of fixed assets B. Out of share premium not collected in cash C. Without any provision for it in the Articles of Association of the company D. Out of free reserves built out of genuine profit

Last Answer : D. Out of free reserves built out of genuine profit

Description : Which of the following statements is not correct? A. For the purpose of Funds Flow Statement, the term 'fund ' generally refers to net working capital B. Funds flow is a wider concept than ... business D. The capitalisation of reserves by the issue of bonus shares also involves flow of funds

Last Answer : D. The capitalisation of reserves by the issue of bonus shares also involves flow of funds

Description : Which is the type of dividend? A. Cash Dividend B. Interest C. Profit cum-reserve D. Flexible Capital

Last Answer : A. Cash Dividend

Description : Which is the form of dividend? A. Cash dividend B. Bond dividend C. Stock dividend D. All of these

Last Answer : D. All of these

Description : Liquidator‘s statement of receipt and payment is known as A. Cash flow statement B. Deficiency a/c C. Statement of affairs D. Liquidator‘s final statement of A/c

Last Answer : D. Liquidator‘s final statement of A/c

Description : Discounted cash flow criteria for investment appraisal does not include A. Not present value B. Benefit cost ratio C. Accounting rate of return D. Internal rate of return

Last Answer : B. Benefit cost ratio

Description : Which is true for existing Economic and Industrial policies of Indian Government ? (i) FERA was abolished (ii) MRTP was abolished (iii) Cash compensatory support for export was abolished (iv) Industrial Licensing (except a few ... (iii) and (iv) C. Only (iii) and (iv) D. Only (ii) and (iii)

Last Answer : C. Only (iii) and (iv)

Description : Which among the following is not the instrument of monetary policy A. Deficit financing B. Statutory liquidity Ratio C. Cash reserve ratio D. Open market operation

Last Answer : A. Deficit financing

Description : If the intrinsic values of shares exchanged are not equal, the difference is paid in ........... (A)Cash (B)Debenture (C)Pref. share (D)Assets

Last Answer : (A)Cash

Description : Trade discount is calculated after cash discount while calculating discount on purchase or sales.

Last Answer : Correct the following statement and rewrite the statement : Trade discount is calculated after ... while calculating discount on purchase or sales.

Description : The entry to record the receipt of payment within the discount period on a sale of $750 with terms of 2/10, n/30 will include a credit to a. Sales Discounts for $15. b. Cash for $735. c. Accounts Receivable for $750. d. Sales for $750.

Last Answer : c. Accounts Receivable for $750.

Description : If a company is given credit terms of 2/10, n/30, it should a. hold off paying the bill until the end of the credit period, while investing the money at 10% annual interest during ... desperate for cash and withhold payment until the end of the credit period while negotiating a lower sales price.

Last Answer : b. pay within the discount period and recognize a savings.

Description : Sales –Gross Profit = ________ a) Cost of goods sold b) Net sales c) Gross Sales d) Liabilities

Last Answer : a) Cost of goods sold

Description : As per accrual concept, which of the followings is not true a) revenue –expenditure = profit b) revenue –profit = expenditure c) sales + gross profit = revenue d) revenue = profit + expenditure

Last Answer : c) sales + gross profit = revenue