IGCSE Accounting Paper-1: Specimen Questions with Answers 168 - 169 of 338

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Question 168

Question

MCQ▾

Which is capital expenditure?

Choices

Choice (4)

a.

$ 2500 spent on purchasing a tyre for a car

b.

Creditors allowed discount of $ 30000

c.

Trademark of the business is registered at $ 50000

d.

$ 20000 worth of goods which is not insured destroyed due to fire.

Answer

c.

Explanation

The benefit of which is not enjoyed within one accounting period is known as capital expenditure. The capital expenditure is non-recurring in nature. In the above statements, expenses incurred in the acquisition of trademark, copyright, and patent rights are comes under the capital expenditure.

Question 169

Edit

Write in Short

Short Answer▾

State the errors which are not disclosed by the trial balance.

Explanation

The following errors are not disclosed by Trial Balance:

  • Errors of complete omission
  • Errors of recording
  • Errors of principle
  • Errors of posting to wrong account in the right side with the correct amount.
  • Compensating errors.

The errors are occurred due to the negligence or violating the rules. The errors which have impact on trial balance is considered into two categories namely

  • Errors disclosed by trial balance
  • Errors not disclosed by trial balance.
  • Errors and Its Two Categories

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