Question

Question 11 In order to be classified as a long-term liability the debt must: Not yet answered Marked out of 1.00 Select one: a. become due/mature more than a year in the future Flag question b. become mature/due within six years c. become mature/due within 6 months O d. become mature/due at the end of the accounting period Question 12 If a company is assumed to continue trading normally for the foreseeable future it is a: Not yet answered Marked out of 1.00 Select one: a.going concern Flag question O b. economic entity c. viable concern d. sound investment Question 13 Items that a business can use or exchange to produce products of the business are known as: Not yet answered Marked out of 1.00 Select one: a. assets Flag question b. property, plant, equipment c. inventory d. materials O

Answer 1

11)correct option is "A"

Long term liabilities is an obligation resulting from past event and that is not likely to be paid within a period of one year (due for more than year ).

12)Correct option is "A"

Going concern assumption says that an entity will carry on business for foreseeable future (Infinite period ).

13)correct option is "D"

Material is used to convert raw input to finished goods (output) or final product of the company.

14)correct option is "D"

Goodwill is an intangible asset which cannot be seen or touched but its existence can be felt .

15)correct option is "C"

Entry for write-off under direct method included debit to Bad debt expense (expense) and credit to accounts receivable(asset)

so when expense is debited it is increased and when asset is credited ,it is decreased.

16)correct option is "b"

Special Journal records transactions of specific type such as purchase or sale. Types of special journal includes Sales Journal ,Purchase journal ,cash payment journal or cash receipt journal .