A company's preliminary expenses written off is shown in: MCQ with Answer and Explanation

Question
A company's preliminary expenses written off is shown in:
A. Balance Sheet
B. Trading Account
C. Profit & Loss Account
D. Not shown
Answer: Option C
Solution (By JKSSB Mock Tests)
Written off portion is charged to P&L Account as an expense.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1
A credit balance in the bank column of a cash book signifies:
A. Cash at bank
B. Fixed deposit
C. Error in accounting
D. Bank overdraft
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
Since bank is an asset (usually debit balance), a credit balance means the business has withdrawn more than deposited, creating an overdraft liability.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
The 'Retention Period' for audit working papers is generally:
A. 10 years
B. 1 year
C. 7 years (or as per SQC 1)
D. No requirement
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
As per ICAI's Standard on Quality Control, retention period is at least 7 years.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
Which of the following books is known as the book of original entry?
A. Journal
B. Balance Sheet
C. Ledger
D. Trial Balance
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
The Journal is the primary book where transactions are first recorded in chronological order.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Explore All Accountancy and Book Keeping MCQs
Today's Top Topics
Accountancy and Book Keeping 1861 Statistics 1318
Explore Subjects
Accountancy and Statistics 3179 Economy GK 2220 English 15164 Computer 5279 Current Affairs 575
Practice Mix
Which of the following is an indirect tax in India?
The valve between the left atrium and left ventricle is the:
A person faces north. He turns 45° left, then 90° right, then 45° left. Which direction is he facing?
Under the Income Tax Act, the 'TDS' on the sale of an immovable property (other than agricultural land) by a resident is governed by which section, and what is the rate?
In 'Piecemeal Distribution' during dissolution, the first priority for payment of outside liabilities is: