CIE Accounting Paper-1: Specimen Questions 132 - 134 of 214
Question number: 132
When will a business issue a credit note?
When goods are returned by a customer
When goods are received from a supplier
When goods are sent to a customer
When goods are received from customer
Credit note is prepared by the seller when goods are returned by the customer. The credit note consist of
- The date on which goods are returned
- The name of the customer
- The details of the goods returned
- The amount of such goods etc. ,
Question number: 133
Which asset is termed as floating assets?
Non- Current Asset
The assets which are easily converted into cash are known as current assets. These current assets are also termed as floating assets. This assets includes Cash in hand, cash at bank, sundry debtors and bills receivable etc. ,
Question number: 134
Write in Short
Give brief meaning of the following terms.
When the owner withdraws money from the business for their personal use is known as drawings. It is almost amounts to temporary loan by the business to the owner. This should be treated on par with the loan to an outsider and interest is charged on the amount drawn by the owner. It will reflect in the capital account of the individuals.