IGCSE Accounting Paper-1: Specimen Questions with Answers 280 - 281 of 338
Get unlimited access to the best preparation resource for Bank-PO : get questions, notes, tests, video lectures and more- for all subjects of Bank-PO.
Question 280
Question
MCQ▾All are the attributes of an asset except-
Choices
| Choice (4) | |
|---|---|
a. | Resources owned by a business entity |
b. | Not measurable in monetary terms |
c. | Resources contributed by the outsiders |
d. | Future economic benefits |
Answer
b.Explanation
- Assets are valuable resources owned by a business entity. These can either be contributed by the owner himself or by the outsiders. They can be physical such as goods, machinery, building etc. or intangible like patent.
- Assets have the ability to provide economic benefits to business in terms of cash inflows resulting from them in future periods.
- Assets have measurable in terms of money. i.e.. one can sell an asset in the market and get some money.
Question 281
Describe in Detail
Essay▾Show the effect of each of the above on the profit for the year. Write “no effect” for the error which does not affect the profit. (Marks 5)
Sudhanshu
Statement of Corrected Profit for the Year Ended 31 March 2019
| Increase in Profit $ | Decrease in Profit $ | Profit $ | |
| Profit for the year before rectification | 6520 | ||
| Error 1 | |||
| Error 2 | |||
| Error 3 | |||
| Error 4 | |||
| Corrected Profit for the year |
Explanation
Sudhanshu
Statement of Corrected Profit for the Year Ended 31 March 2019
| Increase in Profit $ | Decrease in Profit $ | Profit $ | |
| Profit for the year before rectification | 6520 | ||
| Error 1 | 90 | ||
| Error 2 No Effect | × | × | |
| Error 3 | 2000 | ||
| Error 4 | 270 | ||
| 2000 | 360 | 1640 | |
| Corrected Profit for the year | 8160 |