Adjustment Entries II (11-20)

11. The amount of depreciation charged on machinery will be debited to?

(a) Machinery account

(b) Depreciation account

(c) Cash account

(d) Capital account

Correct! Wrong!

12. Accrued expenses affects the?

(a) Assets and expenses

(b) Liabilities and revenues

(c) Assets and revenues

(d) Expenses and liabilities

Correct! Wrong!

13. Wages and salaries payable are classified as a?

(a) Current liability

(b) Long-term liability

(c) Non-current liability

(d) Intangible liability

Correct! Wrong!

14. When an account becomes uncollectible and must be written off?

(a) Allowance for Doubtful Accounts should be credited

(b) Accounts Receivable should be credited

(c) Bad Debt Expense should be credited

(d) Sales should be debited

Correct! Wrong!

15. The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed?

(a) Liability

(b) Contra asset

(c) Book value

(d) Market value

Correct! Wrong!

16. Expired cost of any fixed assets is called?

(a) Decrease

(b) Devalued

(c) Depreciation

(d) None of them

Correct! Wrong!

17. Which of the following is correct for Doubtful Debt?

(a) It is shown in balance sheet

(b) It is an expense of business

(c) It is an asset of business

(d) All of above

Correct! Wrong!

18. Bad debts written off (given in adjustment) always affect the?

(a) Debtors account

(b) Creditors account

(c) Cash account

(d) Capital account

Correct! Wrong!

19. Under the allowance method, writing off a specific customer’s uncollectible account?

(a) Affects only balance sheet accounts

(b) Affects both balance sheet and income statement accounts

(c) Affects only income statement accounts

(d) Is not acceptable practice

Correct! Wrong!

20. Equipment cost Rs. 36,000 and is expected to be useful for 5 years and have no salvage value. Under the straight-line method, monthly depreciation will be?

(a) Rs. 600

(b) Rs. 720

(c) Rs. 60

(d) Rs. 12

Correct! Wrong!

11. The amount of depreciation charged on machinery will be debited to?

12. Accrued expenses affects the?

13. Wages and salaries payable are classified as a?

14. When an account becomes uncollectible and must be written off?

15. The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed?

16. Expired cost of any fixed assets is called?

17. Which of the following is correct for Doubtful Debt?

18. Bad debts written off (given in adjustment) always affect the?

19. Under the allowance method, writing off a specific customer’s uncollectible account?

20. Equipment cost Rs. 36,000 and is expected to be useful for 5 years and have no salvage value. Under the straight-line method, monthly depreciation will be?

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