Question # 1

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

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An income

An Expense

A Profit

A Liability

Carriage account is a/an

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asset account

revenue account

expenditure A/c

withdrawal account

Net sales - cost of goods sold - operating expenses = ?

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Net purchases

Cost of goods sold available for sale

Net operating income

Gross Profit

Which account will be created in the presence of suspense account, if sales book is undercast by Rs. 500

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suspense A/c

sales A/c

cash A/c

none of above

Expenditure is revenue expenditure because

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It is intended to benefit the current period

The amount involved is small

It is deducted from the gross sale proceeds

None of these

Bill receivable book represents

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Ledger

Journal

Trail balance

All of above

Adjusted ______ is used to prepare the income statement and balance sheet

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Trail balance

Ledger

Balance sheet

Bank statement

A credit sale was wrongly passed through purchases book, the rectification of the entry will:

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Increase the net profit by, double amount

Decrease the net profit

Decrease the net profit by double amount

Have no effect on the net profit

The credit purchases were wrongly recorded in sales book, the rectification of entry

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Increase the net profit by double amount

Decrease the net profit by double amount

Decrease the net profit

Increase the net profit

Bank reconciliation statement is prepared by

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Banker

Customer's accountant

Auditors

Manager

A bill of exchange is a / an

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Promise

Unconditional Order

Request

Conditional Order

A paartner who have a major investment in the firm and receive a relatively more profit is called.

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Sleeping partner

Darment partner

Senior partner

Estoppels partner

Consignee is.

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A principal

An agent

A debtor

A creditor

A situation where a company receives application for a less number of shares than offered to the public for subscription is termed as.

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Oversubscription

Under subscription

No subscription

None of these

In case of retirement of a partners full good will is credited to the account of.

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Only retring partner

Only remaining partners

All partners

None of these

Under aunuity method, the annual charger for depreciation wil be debited to.

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Assets account

Depreciation account

Interest account

None of these

Single entery system is most suitbale where

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Credit transactions are numerous.

Cash transactions are numerous

Cahs and credit transactions both are numerios

None of the above

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