7 Questions
What is the primary purpose of making adjustments in Class 11 final accounts?
To ensure accurate presentation of financial position and performance
What is the purpose of preparing Class 11 final account with adjustments?
To ascertain the net profit or loss for the accounting period
Why is it essential to make adjustments for prepaid expenses in Class 11 final accounts?
To decrease the net profit for the accounting period
In Class 11 final accounts, why is it necessary to make adjustments for accrued income?
To ensure that income is not overstated in the financial statements
In Class 11 final accounts, which of the following adjustments is made for accrued income?
Addition to revenues
What is the purpose of preparing Class 11 final accounts with adjustments?
To accurately reflect the financial position and performance of the business
What is the primary purpose of making adjustments for prepaid expenses in Class 11 final accounts?
To avoid understating expenses and overestimating profits
Test your understanding of the purpose and necessity of making adjustments for prepaid expenses and accrued income in Class 11 final accounts. This quiz covers the primary purpose of adjustments, the significance of preparing final accounts with adjustments, and the specific adjustments related to prepaid expenses and accrued income.
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