'Creditors' in the balance sheet are shown as: MCQ with Answer and Explanation

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'Creditors' in the balance sheet are shown as:

A. Liabilities

B. Reserves

C. Assets

D. Capital

Answer: Option A

Solution (By JKSSB Mock Tests)

Creditors are amounts payable, hence liabilities.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

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Which document is prepared to inform the supplier that his account has been debited due to purchase returns?

A. Credit Note

B. Cash Memo

C. Debit Note

D. Invoice

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Correct Answer: Option C

Explanation:
A debit note is sent to the supplier indicating that their account has been debited (reduced) in our books due to returned goods.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

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The 'Companies (Auditor's Report) Order' (CARO) 2020 applies to:

A. All companies

B. Only listed companies

C. Certain class of companies as specified

D. Only banks

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Correct Answer: Option C

Explanation:
CARO 2020 is applicable to specified companies, excluding certain categories like banking, insurance, OPC.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

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In partnership, the 'Sacrificing Ratio' is calculated during:

A. Dissolution of the firm

B. Admission of a partner

C. Death of a partner

D. Retirement of a partner

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Correct Answer: Option B

Explanation:
The sacrificing ratio is the ratio in which existing partners give up their share of profit in favor of the new partner upon admission.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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