Which account is debited when goods are distributed as free samples? MCQ with Answer and Explanation

Question
Which account is debited when goods are distributed as free samples?
A. Drawings Account
B. Advertising Account
C. Purchases Account
D. Sales Account
Answer: Option B
Solution (By JKSSB Mock Tests)
Goods distributed as free samples are treated as a promotional expense, so the Advertising or Sales Promotion account is debited.
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
Which of the following is a fundamental accounting assumption as per AS-1?
A. Accrual
B. Conservatism
C. Matching
D. Materiality
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
AS-1 lists Going Concern, Consistency, and Accrual as the three fundamental accounting assumptions.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
Which of the following statements regarding the Accounting Equation is INCORRECT?
A. Assets = Capital - Liabilities
B. Assets = External Liabilities + Internal Liabilities
C. Assets = External Equities + Internal Equities
D. Assets = Liabilities + Capital
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
The correct accounting equation is Assets = Liabilities + Capital. Therefore, Assets = Capital - Liabilities is mathematically and conceptually incorrect.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'Derecognition of Financial Assets' under Ind AS 109 is based on:
A. Title
B. Possession
C. Transfer of risks and rewards of ownership
D. Legal ownership
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Derecognition occurs when risks and rewards are substantially transferred.
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: