Financial Forensics · Quiz 1 · 16 Jul 2023 · May 2023 term

Question 10: At the beginning of the month the company hired workers …

Question 10

+1 markOne correct option

At the beginning of the month the company hired workers and employees for a total monthly remuneration of ₹ 78,000 payable at the end of each month. How would this transaction reflect in the income statement and balance sheet at the beginning of the month?

A
Only expenses will increase by ₹ 78,000
B
Expense will increase by ₹ 78,000 and liabilities will also increase by equal amount
C
Expense will increase by ₹ 78,000 and cash will decrease by the equal amount
D
There will be no effect on both the statement

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Correct answer

D
There will be no effect on both the statement

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Question 10 of 35 in the IIT Madras BS Financial Forensics (Financial Forensics) Quiz 1 paper sat on 16 Jul 2023, in the May 2023 term (IIT M DEGREE AN2 EXAM QPE2 16 JULY 2023). It carries 1 mark.

Question 10: At the beginning of the month the company hired workers …

Question 10

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