Question # 1

Preliminary expenses paid in the formation of a company is a

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Capital expenditure

Deferred expenditure

Revenue expenditure

Capital loss

An operating statement is similar to a

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Balance sheet

bank reconciliation statement

Financial statement

Profit or loss statement

Trade expenses of Rs. 180 posted in the ledger as Rs. 810, it will be considered as

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Error of principle

Error of omission

Error of casting

Error of transposition

When a bill is transferred by the drawer to his creditor, for settlement of his debts, it is called

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Retirement of Bill

Endorsement of a Bill

Discounting of a Bill

Settlement of a Bill

How many categories of accounts are

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two

three

four

five

Wages paid of installing a machine should be debited to

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Wages a/c

cash a/c

Machinery a/c

None of these

A sheet which minimizes the chances of errors to the maximum possible extent is called

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Balance sheet

Work sheet

Paper sheet

Income statement

When saleable goods are bought in a business are called:

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Sales

Purchase

Assets

Goods

Allowance for discount on account receivable is calculated on the amount of account receivable

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Before deducting the allowance for doubtful debts

Left after deducting the allowance for doubtful debts

Before deducting the actual bad debts

None of these

Assets which have no market value are called

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Wasting assets

Fictitious assets

Intangible assets

Tangible assets

The Legal tenor of a bill is

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Sixty Days

One Month

Eighty Days

Ninety Days

Single entry system is generally adopted by,

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Small business concerns

Large business concerns

Medium business concerns

All of the above

Income and expenditur eaccount is prepared at the

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Start of the year

Mid of the year

End of the year

At the start and ed of the year

In case of del creder commission the liability of bad debts is on

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Consignee

Consignor

Both on consignee and consignor

None of the above

Depreciation is

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An Income

An expense

A loss

A liability

Net worth is equal to,

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Assets - Liabilities

Liabilities - Assets

Liabilities + Capital

Capital + Assets

Receipt and payment account is prepared at the.

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Start of the year

End of the year

Mid of the financeial year

None of these

Under the conversion method of single entry credit salea are ascertained by preparing the.

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Total debtors account

Total creditors account

Total cash account

Total bills receivable account

On the detah of the partner the amount of the joint policy credited to the capital account of.

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Remaining partners capital account

All partners capital accounts

Deceased parners capital account

None of these

The credit balacne of the retained earnings statement represents.

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Undisturbed Profit

Divided declared

Profit distributed

None of these

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

Example of non-profit making organization

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Fan factory

Sugar industry

Hospital

Shoe factory

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