Kindly choose the correct answer

2. The two methods are not mutually exclusive, and some businesses will have a provision for doubtful debts and will also write off specific debts that they know to be bad (for example, if the debtor has gone into ____.)

A. Liquidator (law)

B. Unfair preference

C. Floating charge

D. Liquidation

9. Amortization cost is the acquisition cost adjusted for:

A. Discount

B. Premium

C. Fair value

D. Both (a) & (b)

11. Discount or premium can be amortized using

A. Straight line method

B. Effective interest method

C. Both (a) and (b)

D. None of the above

12. Carrying amount of investment increased by:

A. Amortization of discount

B. Amortization of premium

C. Both (a) and (b)

D. None of the above

13. An incorrect figure for the closing stock will affect all of the following, except:

A. Cost of goods sold

B. Gross profit

C. Value of assets

D. Overhead expenses 14. Which one of the following is a capital expenditure?

A. Cost of replacing worn out tiles on the office floor

B. Cost of goods distributed as samples for an advertising campaign

C. Business making a donation of $1,000 towards the building of a rehabilitation

Centre for drug addicts

D. Building an extension to the business existing premises 15. Depreciation of fixed assets is

A. A capital expenditure and credited to the Fixed Assets Account

B. A revenue expenditure and credited to the Fixed Assets Account

C. A capital expenditure and debited to the Capital Account

D. A revenue expenditure and credited to the Fixed Assets Account

16. A machine was bought for $3,000. It was expected to have a working life of five years and scrap value of $200 at the end of that time: How much would be charged as depreciation per annum using the straight line method:

A. $560

B. $600

C. $400

D. $200