A: When a bill is discounted, the bank charges a fee called discounting charges. R: Discounting charges are debited to the Discount Account. Choose the correct option.
A.Both A and R are true but R is NOT the correct explanation of A
B.A is false but R is true
C.A is true but R is false
D.Both A and R are true and R is the correct explanation of A
Explanation:
When a bill is discounted, the bank deducts a fee (discounting charges) for providing early cash. This fee is a financial expense and is debited to the Discount Account. Both are true, but R doesn't explain *why* the bank charges it (which is for providing early funds).
Explanation:
Normal loss is expected; its scrap value, if any, reduces the cost of good units. The loss quantity is deducted, and cost per unit is computed on input minus normal loss.
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