Accounting

✅ ANSWER: C
Listed company is quoted company. The CA 2006 definition of ‘quoted company’ in s. 385 refers to companies listed on ‘regulated markets’ including the Main Market, but not AIM.

✅ ANSWER: B
LIFO inventory costing methods is supposed to issue the most recently purchased goods. LIFO, which stands for last-in-first-out, is an inventory valuation method which assumes that the last items placed in inventory are the first sold during an accounting year.

✅ ANSWER: B
American companies prepare their financial statement in Dollars whereas Japanese companies produce financial statement in Yen. This is an example of Unit of measurement concept.

✅ ANSWER: A
Balance c/d is the closing balance of a ledger account.

✅ ANSWER: B
A promissory note is drawn by Maker in favor of Payee. Maker or Drawer is the person who makes or draws the promissory note. He is also called the promisor. Drawee or Payee is the person in whose favour the promissory note is drawn.

✅ ANSWER: A
FIFO methods of inventory costing yields highest taxable income. First-in, first-out, or FIFO, applies the earliest costs first. In rising markets, FIFO yields the lowest cost of goods sold and the highest taxable income.

✅ ANSWER: C
Noting charges are paid at the time of Dishonor of the bill. When a Bill of Exchange is dishonoured, in order to prove the fact, the drawer (or holder) may get the bill of exchange noted and protested through a public official known as “Notary Public” Noting is the recording of the fact of dishonour by a Notary public which becomes an evidence of dishonour.

✅ ANSWER: B
In an account, when credit side total < debit side total, then, the balance is known as Debit balance. It is the positive balance in the left side of the account.

✅ ANSWER: D
Materiality is a concept in financial accounting and reporting that firms may disregard trivial matters, but they must disclose everything that is important to the report audience. Items that are important enough to matter are material items.

✅ ANSWER: D
Portion of a fixed asset’s cost consumed during the current accounting period is known as depreciation. Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life and is used to account for declines in value. Businesses depreciate long-term assets for both tax and accounting purposes.