QUESTION: 45

The method of accounting that attempts to recognize changing price levels by applying an industry or asset specific price index to the cost of goods sold and assets consumed is known as:

Current cost accounting
Current purchasing power accounting
Historic cost accounting
Replacement cost accounting

Answer(s): A

Reveal Solution Next Question

Which ONE of the following is a possible explanation for a debit balance on the purchase ledger account of a supplier?

(i) An invoice has been posted twice

(ii) A credit note has been posted twice

(iii) A payment has been recorded against the wrong supplier account

(iv) A payment has been posted twice

(v) A contra was posted to the supplier account but not the customer account
(vi) Goods returned had been posted to the wrong supplier account

(i) and (ii) only
(iii) and (iv) only
(i), (ii) and (iv) only
(ii), (iii) and (iv) only
(i), (ii) and (v) only
(iii), (iv) and (vi) only

Answer(s): D

Reveal Solution Next Question

QUESTION: 47

Accounting standards are needed so that financial statements will fairly and consistently describe financial performance.

What are accounting standards an example of?