CA Inter P4 · Chapter 7 · Question 6 of 8
Which of the following items appears only in the financial accounts and not in the cost accounts?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Interest received on bank deposits
Explanation
Purely financial income such as interest received, dividends, and profit on sale of investments is recorded only in financial accounts because it does not relate to production. Wages, power and factory depreciation are costs recorded in both sets of accounts.
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