Reference no: EM133115989
Questions -
Q1) Wages accrued are shown as:
(a) An asset on the balance sheet
(b) A debit balance in wages account
(c) Income on the income statement
(d) A credit balance in wages account
Q2) Rates prepaid are shown as:
(a) A liability in the balance sheet
(b) An expense on the income statement
(c) Debit balance in rates account
(d) Credit balance in rates account
Q3) Nasir's financial year ends on 31 December. On 1 April 20-9, she paid 1,800 for one year's insurance on new premises. What entry would be made for insurance in the balance sheet on 31 December 20-9?
(a) 450 asset
(b) 450 liability
(c) 1,350 asset
(d) 1,350 liability
Q4) Zaid's financial year ends on 31 October. On 1 November 20-6, he owed advertising costs of 40. During the year ended 31 October 20-7, he paid advertising costs of 530. This included 270 for an advertising campaign for six months to 29 February 20-8. How much did Zaid charge to income statement for the year ended 31 October 20-7 for advertising costs?
(a) 220
(b) 260
(c) 310
(d) 350