Understanding financial Statements

This set of MCQs helps students to learn about various important things such as, describe the need for adjustments while preparing the financial statements, explain the accounting treatment of adjustments for outstanding and prepaid expenses, accrued and advance receipts of incomes, discuss the adjustments to be made regarding depreciation, bad debts, provision for doubtful debts, provision for discount on debtors, explain the concepts and adjustment of manager’s commission and interest on capital, prepare profit and loss account and balance sheet with adjustments.