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Financial Forensics · Quiz 1 · 26 Feb 2023 · January 2023 term · Set QPE2

Question 9: A company purchased goods worth ₹ 3,40,000 from a supplie…

Question 9

+1 markOne correct option

A company purchased goods worth ₹ 3,40,000 from a supplier and the payment was made immediately through a cheque. What will be the effect in the income statement and balance sheet on the date of purchase ?

  1. A

    Expenses will increase by ₹ 3,40,000 and bank balance will reduce by ₹3,40,000

  2. B

    Assets will increase by ₹ 3,40,000 and liability will increase by ₹ 3,40,000

  3. C

    Expenses will increase by ₹ 3,40,000 and liability will increase by ₹ 3,40,000

  4. D

    Assets will increase by ₹ 3,40,000 and bank balance will reduce by ₹ 3,40,000

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Correct answer

  • D

    Assets will increase by ₹ 3,40,000 and bank balance will reduce by ₹ 3,40,000

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Question 9 of 25 in the IIT Madras BS Financial Forensics (Financial Forensics) Quiz 1 paper sat on 26 Feb 2023, in the January 2023 term (IIT M DEGREE AN4 EXAM QPE4 26 Feb 2023). It carries 1 mark.

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