Discount Allowed is considered a: MCQ with Answer and Explanation

Question

Share Report Error

Discount Allowed is considered a:

A. Selling & Distribution Expense

B. Financial Expense

C. Direct Expense

D. Factory Expense

Answer: Option A

Solution (By JKSSB Mock Tests)

Discount allowed is given to encourage prompt payment by customers, treated as a selling/administrative expense in the P&L Account.

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

The 'Activity Based Costing' (ABC) is more suitable for:

A. Labour-intensive industries

B. Organisations with high product diversity and complex overhead structures

C. Only service industries

D. Only small businesses

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
ABC works best where overheads are high and diverse, and products consume resources differently.

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

Question #2

A system of accounting that combines features of both cash and accrual bases is termed:

A. Single Entry System

B. Hybrid System

C. Mercantile System

D. Government Accounting

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
In a hybrid system, revenues might be recorded on a cash basis while expenses are recorded on an accrual basis, often used by certain professionals.

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

Question #3

In the Balance Sheet, 'Patents' are shown under:

A. Current assets

B. Current liabilities

C. Fixed assets – Intangible

D. Investments

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Patents are intangible fixed assets.

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

Explore All Accountancy and Book Keeping MCQs