Question # 1

Income received in advance during the year is

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Prepaid Expenses

Accrued Income

Advance Expenses

Advance Income

According to accounting equation, capital is equal to

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assets + liabilities

expenses-incomes

liabilities - assets

assets - liabilities

Discount deducted from the catalogue or list price is called:

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Trade discount

Cash discount

Catalogue discount

Credit discount

Carriage account is a/an

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asset account

revenue account

expenditure A/c

withdrawal account

A sale of Rs. 1000 to Farid, was credited to his account, it will affect

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Sales account

Farid account

Cash account

Both a & b

A cash account always shows

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Debit Balance

Credit Balance

Both a and b

Nil Balance

An expenditure, which is non-recurring and irregular is called

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Capital expenditure

Revenue expenditure

Short-term expenditure

Current expenditure

From business point of view, interest on capital is considered as

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An income

An Expense

A Profit

A Liability

The transactions, the effect of which is not exhausted with in the current accounting year are called

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Revenue transaction

Capital transaction

Current transaction

Monetary transaction

The cash book is a book of

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Compound entry

Original entry

Final entry

Simple entry

.If the error committed in the capital account, it will affect

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Trading account

Profit and loss account

Trading and profit and loss account

Balance sheet

A prospectus for subscription of shares can be issued only by.

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Public company

A private company

Both public and private company

None of these

When the incoming partner pays the firm for good willin cash the amount should be debited to firms books to.

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Good will accounts

Cash Account

Capital account of the incoming partner

All of the above

Receipts and payments account records the transactions of

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Revenue nature

Capital nature

Revenue and capital nature

None of these

Current accout of the partners should be opened when the capitals are.

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Fluctuating

Fixed

Either fixed or fluctuating

Neither fixed or fluctuating

Subscription Received in advance is.

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An income

An assets

Liability

An expenditure

If the good will raised at the time of retirement of a partner is to be written off, then the capital accounts of the remaiing partners are debited in.

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Capital ratio

Old profit sharing ratio

New profit shiaring ratio

None of these

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