[amp_mcq option1=”Asset side of balance sheet” option2=”Liabilities side of balance sheet” option3=”Credit side of profit and loss account” option4=”Debit side of profit and loss account” correct=”option4″]<\/p>\n
The correct answer is: D. Debit side of profit and loss account<\/strong><\/p>\n Income tax deducted from interest paid on debenture is shown on the debit side of the profit and loss account. This is because it is a cost of doing business, and all costs are recorded on the debit side of the profit and loss account.<\/p>\n The asset side of the balance sheet shows the company’s resources, while the liability side shows the company’s obligations. The credit side of the profit and loss account shows revenues, while the debit side shows expenses.<\/p>\n Here is a more detailed explanation of each option:<\/p>\n This is incorrect because income tax deducted from interest paid on debenture is not an asset. An asset is a resource that a company owns and expects to benefit from in the future. Income tax deducted from interest paid on debenture is a cost of doing business, not an asset.<\/p>\n This is incorrect because income tax deducted from interest paid on debenture is not a liability. A liability is an obligation that a company owes to another party. Income tax deducted from interest paid on debenture is a cost of doing business, not a liability.<\/p>\n This is incorrect because income tax deducted from interest paid on debenture is not a revenue. Revenue is income that a company earns from its operations. Income tax deducted from interest paid on debenture is a cost of doing business, not a revenue.<\/p>\n This is the correct answer because income tax deducted from interest paid on debenture is a cost of doing business. All costs are recorded on the debit side of the profit and loss account.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Asset side of balance sheet” option2=”Liabilities side of balance sheet” option3=”Credit side of profit and loss account” option4=”Debit side of profit and loss account” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-47759","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n\n
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