Question # 1

Preliminary expenses incurred before the commencement of business

Choose an answer

revenue expenditure

capital expenditure

deferred revenue expenditure

capital loss

Financial accounting is mainly confined to preparation of:

Choose an answer

Manufacturing statement

Financial statements

Production statement

Sale statement

Gross profit equals to

Choose an answer

Net profit minus expenses

Sales minus closing stock

Purchases minus closing stock

Sales minus cost of goods sold

All revenue expenditure are taken to

Choose an answer

Trading a/c

Trading & profit or Loss a/c

Profit or loss a/c

Balance sheet

The amount invested by the owner in the business to produce revenue is known as

Choose an answer

Income

Asset

Capital

Liability

An expenditure incurred in increasing the efficiency of a fixed asset is called:

Choose an answer

Revenue expenditure

Capital expenditure

Current expenditure

None of these

Bad debts are

Choose an answer

deferred expenditure

revenue expenditure

capital expenditure

none of these

The creditor of the business are called:

Choose an answer

Assets

Liabilities

Capital

Income

Assets come into existence upon the happening of a certain event, are called:

Choose an answer

Fixed assets

Fictitious assets

Floating assets

Contingent assets

According to accounting equation, capital is equal to

Choose an answer

assets + liabilities

expenses-incomes

liabilities - assets

assets - liabilities

Accounting principles can be classified in

Choose an answer

three types

two types

five types

six types

In the absence of an agreemetn, interest on loan advanced by the partner to the firm is allowd at the rate of.

Choose an answer

5 persent

6 persent

8 persent

9 persent

Capital fun of non trading concern is equal to.

Choose an answer

Assets + Income

Assets + Liabilities

Expenditure + Liabilities.

Assets - Liabilities

In single entry system,

Choose an answer

Personal accounts are maintained

Real accounts are maintained

Nominal accounts are maintained

None of the above

In income and expenditure account

Choose an answer

Expense are recorded on debit side

Revenues are recorded on credit side

Does not start with any opening balance

All of the above

The investment in partners capital accounts is to be credited to.

Choose an answer

Partners capital accounts

Profit and loss account

Interest account

None of these

In the books of consignor, the loss on the consignment should be crediterd to.

Choose an answer

Consignment account

Consigneee 's account

Profit and loss account

Gppds sent on consignemnt

Amount received by the way of gift from any person or organization is called.

Choose an answer

Donation

Subscription

Legacy

None of these

Depreciation is

Choose an answer

An Income

An expense

A loss

A liability

A new partner may be admitted to a partnership.

Choose an answer

With the consent of all the partners

With the consent of any one of the partners

With consent of two third the old partners

Without the consent of old partners

In increased net worth method, profit or loss is calculated by preparing,

Choose an answer

Income and expenditure account

Profit and loss account

Statement of profit or loss

Balance sheet

Dividend is calculated on.

Choose an answer

Registered capital

Issue Capital

Paid up Capital

Subscribed Capital

More Classes

Other Links

Accounting Test Easy Mode MCQs With Answers

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer