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The simplest version is the ratio of NET INCOME to total ASSETS. The auditor observes similarities and differences among similar items such as an account from one year to the next. compensating balance An offsetting balance. A business partnership, especially when it is unincorporated. Rs. 1,630 (d) Received a telephone bill amounting to Rs. 550 to be paid within ten days. (406) Which of the following statements about accounting procedures is not correct? (c) Posting is the process of transferring information from ledger accounts to the journal. (408) Trial Balance is prepared: (a) To ensure arithmetical accuracy of accounting records. (b) To establish complete accuracy of accounting records. (c) To determine the amounts payable to suppliers for purchase of goods on credit. (d) To ensure efficient use of resources of the business. (409) The net sales of Fresh Foods were Rs. 200,000 for the current month.

Pages: 77

Publisher: Stationery Office (June 2006)

ISBN: 010294010X

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