Adjustment Entries II (1-10)

1. What will be the Book value of asset if its original cost is Rs. 50,000; accumulated depreciation is Rs. 20,000; and depreciation expense for the year is Rs. 10,000?

(a) Rs. 70,000

(b) Rs. 80,000

(c) Rs. 30,000

(d) Rs. 40,000

Correct! Wrong!

2. Amount owing from the debtor which is not expected to be received?

(a) Debit

(b) Bad debt

(c) Liability

(d) None of the above

Correct! Wrong!

3. Net realizable value of accounts receivable is?

(a) Accounts Receivable plus Allowance for Doubtful Account

(b) The same as Accounts Receivable because all accounts receivable are assumed to be collectible

(c) Accounts Receivable minus Allowance for Doubtful Account

(d) None

Correct! Wrong!

4. A provision is?

(a) The recognition of a probable future obligation

(b) A fund of money and investments

(c) A liability of uncertain timing or amount

(d) Non of Above

Correct! Wrong!

5. What is an expense that a business has incurred but has not yet paid?

(a) Accrued Revenue

(b) Prepaid Expense

(c) Unearned Revenue

(d) Accrued Expense

Correct! Wrong!

6. The amount reserved for doubtful receivables?

(a) Doubtful debts

(b) Bad debts

(c) Provision for bad debts

(d) All of them

Correct! Wrong!

7. If the allowance method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customer's account as uncollectible?

(a) Uncollectible Accounts Expense

(b) Accounts Receivable

(c) Allowance for Doubtful Accounts

(d) Interest Expense

Correct! Wrong!

8. Which of the following asset is not depreciated?

(a) Factory Buildings

(b) Office Equipment

(c) Plant & Machinery

(d) Land

Correct! Wrong!

9. Recovery of bad debts is treated as?

(a) Revenue

(b) Expenses

(c) Asset

(d) Loss

Correct! Wrong!

10. What will the effects on financial statements, if machinery is depreciated @ 10%?

(a) It will be treated as an expense in income statement only

(b) It will be subtracted from concerned asset only

(c) It will be treated as a current asset only

(d) It will be treated as an expense in income statement & subtracted from concerned assets in Balance Sheet

Correct! Wrong!

1. What will be the Book value of asset if its original cost is Rs. 50,000; accumulated depreciation is Rs. 20,000; and depreciation expense for the year is Rs. 10,000?

2. Amount owing from the debtor which is not expected to be received?

3. Net realizable value of accounts receivable is?

4. A provision is?

5. What is an expense that a business has incurred but has not yet paid?

6. The amount reserved for doubtful receivables?

7. If the allowance method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customer's account as uncollectible?

8. Which of the following asset is not depreciated?

9. Recovery of bad debts is treated as?

10. What will the effects on financial statements, if machinery is depreciated @ 10%?

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