Provision is created for____________?

Related Mcqs:

1. An increase in provision for bad debt will____________?

   A. Decrease net income
   B. Decrease liabilities
   C. Increase net income
   D. Increase liabilities

2. 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.

3. 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

4. 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

5. If a transaction is completely omitted from the books of accounts, will it affect the agreement of a trial balance?

   A. Yes
   B. No
   C. Transactions can’t be omitted
   D. none of these

6. Keeping the log of financial information in books of original entries is called__________?

   A. Recording
   B. summarizing
   C. Grouping
   D. Processing

7. The normal balance of capital account is_____________?

   A. Credit balance
   B. Debit balance
   C. Cash balance
   D. Neither debit nor credit balance

8. Depreciation decreases____________?

   A. Liabilities
   B. Cash
   C. Bank
   D. Capital

9. Which of the following assets is/are to be valued at the lower of cost and net realizable value?

   A. Goodwill
   B. Inventories
   C. Investments
   D. Both B. and C. above.

10. Which of these is not an operating income?

    A. Income from sale of trading goods
    B. Bad debts recovered
    C. Interest on FDs
    D. None