PRC-1 · Chapter 4 · Question 74 of 100
Following the previous scenario (Rent received in advance Rs. 80,000; Unused office supplies Rs. 25,000; Accrued salary Rs. 22,500; Prepaid insurance Rs. 4,800), what is the total addition to Current Assets?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rs. 29,800
Explanation
Current assets consist of unused office supplies (Rs. 25,000) and prepaid insurance (Rs. 4,800). Total = Rs. 29,800.
More Accruals and Prepayments MCQs
- Q76If an entity receives Rs. 24,000 for a 12-month software subscription starting on September 1, what is the unearned revenue balance at its…
- Q77An entity paid Rs. 36,000 for a 12-month commercial insurance policy beginning on April 1. The financial year ends on December 31. What is…
- Q78A business earns interest on a bank deposit of Rs. 500,000 at a rate of 6% per annum. Interest is credited by the bank half-yearly on June…
- Q79A landlord received Rs. 120,000 on July 1, representing one year's rent in advance. This entire amount was initially credited to the…
- Q80A company pays property taxes of Rs. 48,000 per year covering the period from April 1 to March 31. The payment is made in full on April 1…