IGCSE Accounting Paper-1: Specimen Questions with Answers 23 - 25 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 23

Question

MCQ▾

John sold goods to James. He sent an invoice for goods but later discovered that he had undercharged for the goods sold.

Which document will James receive to correct John mistake?

Choices

Choice (4)

a.

Debit note

b.

Credit note

c.

statement

d.

Cheque

Answer

b.

Explanation

The credit note is the document issued by the seller to the buyer in order to correct any undercharges against the invoice amount.

The credit note is also known as credit memorandum or memo.

Question 24

Question

MCQ▾

Which is a current liability for a business?

Choices

Choice (4)

a.

Outstanding interest charges on loan from bank

b.

Ten year loan from bank

c.

Pre-paid insurance premium

d.

Provision for depreciation

Answer

a.

Explanation

Current liabilities are liabilities which liable to pay during the year. Outstanding interest charges on loan from bank are a current liability and should be paid during the accounting year. The last year interest is yet to be paid.

Question 25

Question

MCQ▾

Which concept ensures that the profit or loss shown is on the basis of full facts relating to all expenses and incomes?

Choices

Choice (4)

a.

Matching Concept

b.

Cost Concept

c.

Periodicity Concept

d.

Accrual Concept

Answer

d.

Explanation

Under accrual concept ensures that the profit or loss shown is on the basis of full facts relating to all expenses and incomes. This concept reveals the difference between the receipt of cash and the right to receive cash.

🎯 Select Paper 📂

🚀 Consider Exploring

Developed by: