Question : When some companies, in order to cover up their bad financial position resort to ----------- i.e., showing a better position than the one which really exists. They change their balance sheet in such a way that the important facts and truth may be concealed.
Option 1: Book keeping
Option 2: Accounting
Option 3: Accountancy
Option 4: Window dressing
Correct Answer: Window dressing
Solution : Answer = Window dressing
Window dressing refers to the practice of manipulating financial statements to present a more favourable picture of a company's financial position and performance than is the case. This may involve selectively disclosing information, altering accounting methods, or engaging in transactions solely to improve the appearance of stakeholders or investors. Hence, the correct option is 4.
Question : In the Balance Sheet, Total Debtors appear at Rs.5, 00,000 and Provision for Doubtful Debts appears at Rs. 1,50,00. How much amount will be realised from Debtors if bad debts amount to Rs. 1,00,000 and remaining debtors are realised at a discount of 5%?
Question : On dissolution of a firm, debtors Rs 34,000 were shown in the Balance Sheet. Out of this Rs 4000 became bad. One debtor became insolvent. 70% were recovered from him out of 10,000. The full amount was recovered from the balance debtors. On account of this item, the loss in
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