The term 'Debtors' represent: MCQ with Answer and Explanation

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The term 'Debtors' represent:

A. Bills payable

B. Outstanding expenses

C. Amounts owed to the business by customers

D. Amounts owed by the business

Answer: Option C

Solution (By JKSSB Mock Tests)

Debtors are persons/entities who owe money to the business for goods/services provided on credit.

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

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Question #1

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A key challenge of Human Resource Accounting is:

A. It reduces taxable income

B. It is banned by Ind AS

C. Excessive software cost

D. Lack of standardized models to objectively value human capital

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Correct Answer: Option D

Explanation:
Valuing human beings as assets involves subjective assumptions about tenure, capability, and future value, lacking a universally accepted model.

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Question #2

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According to the accounting equation, if a business borrows ₹50,000 from bank, then:

A. Assets increase, capital increase

B. Assets decrease, liabilities increase

C. Assets decrease, capital decrease

D. Assets increase, liabilities increase

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Correct Answer: Option D

Explanation:
Cash (asset) increases, and bank loan (liability) increases.

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Question #3

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Opportunity Cost can be best described as:

A. A cost that cannot be changed

B. The benefit sacrificed when choosing one alternative over the next best alternative

C. The cost of idle time

D. The direct cost of making a product

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Correct Answer: Option B

Explanation:
Opportunity cost is a crucial economic and management concept reflecting the value of the foregone alternative in decision making.

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