Debts which are payable in the course of a month are called _____________?

Related Mcqs:

1. If actual bad debts are more than the provision for bad debts, then there will be a_____________?

   A. Credit balance of Provision for Bad Debts Account
   B. Debit balance of Provision for Bad Debts Account
   C. Debit balance of Bad Debts Account
   D. Debit balance of Discount on Debtors Account

2. Consider the following data for a company during the month of June 2012 Budgeted hours 4,000 Standard hours for actual production 4,400 Maximum possible hours in the budget period 4,800 Actual hours 3,800 The activity ratio of the company during the month is

   A. 111%
   B. 120%
   C. 95%
   D. 117%

3. Bad debts recovered account will be transferred to______________?

   A. Debtor‘s Account
   B. Profit and Loss Account
   C. Provision for Doubtful Debt Account
   D. Either B or C above

4. The entry for creating a Provision for bad debts is_____________?

   A. Debit Provision for Bad Debts A/c and credit Debtors A/c
   B. Debit Debtors A/c and credit Provision for Bad Debts A/c
   C. Debit Provision for Bad Debts A/c and credit Profit & Loss A/c
   D. Debit Profit and Loss A/c and credit Provision for Bad Debts A/c.

5. The creation of provision for doubtful debts given as an adjustment requires____________?

   A. Debit Profit and Loss Account and deduct the provision from debtors
   B. Credit Profit & Loss Account and deduct the provision from debtors
   C. Credit Profit and Loss Account and add the provision to debtors
   D. Debit Profit & Loss Account and add the provision to debtors

6. Bad debts recovered is:

   A. Credited to P&L A/c
   B. Debited to P&L A/c
   C. Reduced from debtors in Balance Sheet
   D. Added to debtors in Balance Sheet

7. The amount payable to a person as consideration for the use of rights vested in him is

   A. Dividend
   B. Royalty
   C. Purchase consideration
   D. Installment

8. Which of the following entries is correct in respect of reserve for discounts on accounts payable?

   A. Debit P&L A/c and Credit Reserve for Discount on Accounts Payable A/c
   B. Debit Accounts Payable A/c and Credit P&L A/c
   C. Debit Reserve for Discount on Accounts Payable A/c and Credit P&L A/c
   D. Debit Reserve for Discount on Accounts Payable A/c and credit Accounts Payable A/c

9. A Bill of Exchange is drawn on 1st April, 2018 payable after 3 months. The due date of the bill is?

   A. 30th June,2018
   B. 1st July,2018
   C. 4th July,2018
   D. 4th August,2018

10. A company was entered in hire purchase agreement and had to pay $1000 per month. Three payments were made via bank account but no entry was found in cash book. Identify the correct adjustment in cash book

    A. $1000 will be added to cash book balance
    B. $2000 will be deducted from cash book balance
    C. $3000 will be added to cash book balance
    D. $3000 will be subtracted from cash book balance