Accounting Test Easy Mode

Sr. #	Questions	Answers Choice
1	The amount invested by the owner in the business to produce revenue is known as	Income Asset Capital Liability
2	From the business point of view, interest on drawings is	An asset An expense A liability A revenue
3	Allowance for doubtful debts normally has a	Debit balance Credit balance Both debit & credit balance None of these
4	Allowance for discount on account receivable is calculated on the amount of account receivable	Before deducting the allowance for doubtful debts Left after deducting the allowance for doubtful debts Before deducting the actual bad debts None of these
5	Which one of the following is a direct expense?	Packing expense Advertisement expense Manufacturing expense Traveling expense

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