1 CHAPTER 01 B

19 All other definitions include some part of the correct answer but are incomplete.
2 43 Decrease in an asset (Cash), Decrease in equity (due to wages expense) D
3 54 Machinery and payable for machinery, Trade payables are related to purchases of inventory only. C
4 59 Non-current assets as used in showroom for long term use, Inventory is for resale. C
5 CHAPTER 02 TRUE
TRUE- This statement is selected from the at glance chapter 02
6 09 Non-current asset sold on credit C
7 14 Customer as an evidence of return of goods A
8 27 Purchase requisition A
9 34 For maintaining a fixed float; an amount equal to weekly expenses incurred is reimbursed B
10 CHAPTER 03 TRUE
TRUE- This statement is selected from the at glance chapter 03
11 03 T account: periodically & Running balance account: after each transaction C
12 29 Loan (owed) and owner’s capital A
13 42 Order of appearance of accounts in financial statements C
14 50 Income, expenses and drawings a/c are closed at end of year while assets, liabilities and capital a/c are carried C
forward to next year
15 CHAPTER 04 C
09 Interest expense = (Rs. 250,000x15%) x10/12=Rs. 31,250, Rental income = Rs. 4,500 x 6 = Rs. 27,000
16 10 Income received in advance is an obligation to deliver goods or services in future and therefore a liability. As D
such advances are not for long term, it is treated as current liability.
17 21 An expense relating to the current year but not paid in current year C
18 38 1,486+1,625-834= 2,277 B
19 CHAPTER 05
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