When converting Single Entry to Double Entry, the Bills Receivable dishonored will be: MCQ with Answer and Explanation

Question
When converting Single Entry to Double Entry, the Bills Receivable dishonored will be:
A. Debited to Cash A/c
B. Ignored
C. Credited to Total Debtors A/c
D. Debited to Total Debtors A/c
Answer: Option D
Solution (By JKSSB Mock Tests)
Dishonor of a bill reinstates the debtor's liability, thus the Total Debtors Account is debited to increase the balance.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
Assertion (A): Audit sampling involves applying audit procedures to less than 100% of items within a population. Reason (R): Audit sampling eliminates the risk of drawing a false conclusion about the entire population. Choose the correct option.
A. A is true but R is false
B. A is false but R is true
C. Both A and R are true but R is NOT the correct explanation of A
D. Both A and R are true and R is the correct explanation of A
Discuss
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Correct Answer: Option A

Explanation:
A is true as per SA 530. R is false because audit sampling inherently carries sampling risk, meaning it cannot completely eliminate the risk of drawing a false conclusion.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
A costing technique where only variable costs are charged to products, and fixed costs are written off to the P&L account in the period incurred, is:
A. Standard Costing
B. Absorption Costing
C. Job Costing
D. Marginal Costing
Discuss
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Correct Answer: Option D

Explanation:
Marginal costing strictly separates fixed and variable costs, treating fixed costs as period costs rather than product costs.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The concept of 'Cost Control' differs from 'Cost Reduction' in that Cost Control:
A. Seeks to maintain costs within predefined standards/budgets
B. Assumes a permanent reduction in unit cost
C. Challenges existing standards to find cheaper methods
D. Is applicable only to research and development
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Correct Answer: Option A

Explanation:
Cost control ensures costs do not exceed the set budget/standard, while cost reduction seeks to permanently lower the standard itself.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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