Which one of the following statements regarding the allowance of transfers in respect of disbursements or fees of the firm is incorrect?Select one:a.Disbursements have been debited to the client’s accounts in the accounting records, orb.The disbursements were incurred, and the client has been charged; orc.Fees have been debited to the client’s accounts in the accounting records, ord.There is no contractual obligation on the part of the practice to pay the disbursement.

If the Allowance for Doubtful Accounts was debited, what account was credited?Multiple choice question.Accounts ReceivableBad Debt ExpenseSales Discounts and AllowancesAccounts PayableSales Revenue

Which of the following statements is incorrect?Select one:a.The practice of transferring rounded amounts is acceptable.b.If a law firm uses electronic banking (EFT’s) in respect of payments from the trust account to the business account the law firm shall keep a proper audit trail, which shall include verification of the payee’s banking account details.c.The exact amount owing on the business account of the client should be transferred.d.The law firm must ensure that adequate internal controls are implemented in order to ensure compliance with the rules as well as to ensure that trust funds are safeguarded.

Which of the following statements is correct about debentures?(a) Interest on debentures is an appropriation of profits.(b) Debenture holders are the creditors of a company.(c)Debentures cannot be issued to vendors at discount.(d) Interest is paid on Debentures issued as Collateral Security.7. Read the following statements: Assertion (A) and Reason (R). Choose the correct alternativefrom those given below.Assertion (A) :- Under Section 62(1)(b) of the Companies Act, 2013, a Company may offershares to its employees under a scheme of ‘Employees Stock Option’ which means the option(right) given to the whole-time directors, officers or permanent employees of a company topurchase or subscribe the securities offered by the company at a future date, at a pre-determinedprice, which is lower than the market price.Alternatives:Reason (R) :- The company need not to pass a special resolution to this effect.(a) Both Assertion (A) and Reason (R) are Correct and Reason (R) is the correct explanation ofAssertion (A)(b) Both Assertion (A) and Reason (R) are Correct, but Reason (R) is not the correct explanationof Assertion (A)(c) Assertion (A) is incorrect, but Reason (R) is Correct.(d) Assertion (A) is correct, but Reason (R) is incorrect8. Neil, Nitin and Nitesh were partners in the firm sharing profits and losses equally. Neil retiresfrom the firm and on his retirement, he is entitled for the payment due to him after all theadjustments.

Which of the following is recorded at the end of an accounting period when accounting for receivables using the allowance method?Multiple choice question.The write off of specific customer accounts is recorded by debiting Allowance for Doubtful Accounts and crediting Bad Debt Expense.An estimate is recorded by debiting Bad Debt Expense and crediting Allowance for Doubtful Account in the same period as the related sale.The write off of specific customer accounts is recorded by debiting Accounts Receivable and crediting Allowance for Doubtful Accounts.The write off of specific customer accounts is recorded by debiting Allowance for Doubtful Accounts and crediting Accounts Receivable.

Assuming the allowance method, the entry to record the write-off of a specific, non-paying customer is recorded with a debit to ______.Multiple choice question.Allowance for Doubtful Accounts and credit to Accounts ReceivableBad Debts Expense and credit to Accounts ReceivableAccounts Receivable and credit to Bad Debts ExpenseAccounts Receivable and credit to Allowance for Doubtful Accounts.