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Financial Forensics · Quiz 1 · 27 Oct 2024 · September 2024 term

Question 7: At the beginning of the month the company hired workers a…

Question 7

+1 markOne correct option

At the beginning of the month the company hired workers and employees for a total monthly remuneration of ₹ 75,000 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?

  1. A

    Expense will increase by ₹ 75,000 and liabilities will also increase by equal amount

  2. B

    Expense will increase by ₹ 75000 and cash will decrease by the equal amount

  3. C

    There will be no effect on both the statements

  4. D

    Only expenses will increase by ₹ 75000

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Correct answer

  • C

    There will be no effect on both the statements

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Question 7 of 23 in the IIT Madras BS Financial Forensics (Financial Forensics) Quiz 1 paper sat on 27 Oct 2024, in the September 2024 term (IIT M DEGREE AN EXAM QDB2 27 Oct 2024). It carries 1 mark.

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