A machine with a written down value of Rs. 10,000 has been sold for Rs. 13,000. The amount realized is a:
A. Capital receipt and profit involved should be transferred to capital reserve
B. Revenue receipt
C. Capital receipt and profit involved should be transferred to general reserve
D. Capital receipt and profit involved should be transferred to Profit & Loss A/c
Answer: Option D
This Question Belongs to Commerce >> Accounting
Accounting provides information on
A. Cost and income for managers
B. Company's tax liability for a particular year
C. Financial conditions of an institutions
D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Patents, Copyrights and Trademarks are
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
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