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Questions and Answers
What is the primary purpose of making adjustments in Class 11 final accounts?
What is the primary purpose of making adjustments in Class 11 final accounts?
- To decrease the liabilities of the business
- To increase the total assets of the business
- To simplify the process of financial reporting
- To ensure accurate presentation of financial position and performance (correct)
What is the purpose of preparing Class 11 final account with adjustments?
What is the purpose of preparing Class 11 final account with adjustments?
- To analyze the cash flow for the accounting period
- To calculate the total expenses incurred during the accounting period
- To ascertain the net profit or loss for the accounting period (correct)
- To determine the total revenue generated during the accounting period
Why is it essential to make adjustments for prepaid expenses in Class 11 final accounts?
Why is it essential to make adjustments for prepaid expenses in Class 11 final accounts?
- To increase the value of fixed assets
- To reduce the total liabilities of the business
- To decrease the net profit for the accounting period (correct)
- To avoid recognizing unexpected expenses in the next accounting period
In Class 11 final accounts, why is it necessary to make adjustments for accrued income?
In Class 11 final accounts, why is it necessary to make adjustments for accrued income?
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In Class 11 final accounts, which of the following adjustments is made for accrued income?
In Class 11 final accounts, which of the following adjustments is made for accrued income?
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What is the purpose of preparing Class 11 final accounts with adjustments?
What is the purpose of preparing Class 11 final accounts with adjustments?
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What is the primary purpose of making adjustments for prepaid expenses in Class 11 final accounts?
What is the primary purpose of making adjustments for prepaid expenses in Class 11 final accounts?
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