1 |
Expenditure is revenue expenditure because |
- A. It is intended to benefit the current period
- B. The amount involved is small
- C. It is deducted from the gross sale proceeds
- D. None of these
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2 |
All the transactions recorded to credit sales are recorded in: |
- A. Sale return book
- B. Sales book
- C. Cash book
- D. Debtor's book
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3 |
Expenditure is a capital expenditure because |
- A. The amount involved is heavy
- B. It is the personal expenditure of the owner out of his capital
- C. It is intended to benefit the future period
- D. It is a recurring expenditure
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4 |
It is prepared to determine the net profit or net loss |
- A. Trading account
- B. Profit or loss account
- C. Cash book
- D. Balance sheet
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5 |
An expenditure, which is non-recurring and irregular is called |
- A. Capital expenditure
- B. Revenue expenditure
- C. Short-term expenditure
- D. Current expenditure
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6 |
The capital profit should be transferred to: |
- A. Profit and loss account
- B. Trading account
- C. Balance Sheet
- D. Both Trading and profit and loss account and balance sheet
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7 |
All the time of endorsement of a bill the drawer credits: |
- A. The drawee account
- B. The endorser's personal account
- C. Bill receivable account
- D. Endorser's account
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8 |
A balance sheet is a |
- A. Statement of income and expenditure
- B. Statement of debtors and creditors
- C. Financial statement of a business on a particular date
- D. Statement of profit earned by a busniess
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9 |
Wages paid for installing a machine should be debited to |
- A. Wages a/c
- B. Cash a/c
- C. Machinery a/c
- D. none of these
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10 |
Income tax paid is a |
- A. Business Expense
- B. Business Revenue
- C. Business Liability
- D. Personal Expense
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