| 1 |
The accrued income or outstanding income will appear in the balance sheet as |
- A. An expense
- B. A liability
- C. An asset
- D. Both a & b
|
| 2 |
Net profit is always |
- A. Equal to gross profit
- B. More than gross profit
- C. Less than gross profit
- D. None of these
|
| 3 |
An income which has earned but not received is called |
- A. Unearned income
- B. Accrued revenue
- C. Revenue received in advance
- D. None of these
|
| 4 |
All those expenses which have not become due but paid in advance are called |
- A. Accrued expenses
- B. Outstanding expenses
- C. Prepaid expenses
- D. Payable expenses
|
| 5 |
All those expenses which have become due but not paid are called |
- A. Accrued revenue
- B. Prapaid revenue
- C. Outstanding expenses
- D. Advance expenses
|
| 6 |
Wages paid of installing a machine should be debited to |
- A. Wages a/c
- B. cash a/c
- C. Machinery a/c
- D. None of these
|
| 7 |
Outstanding expense given in adjustment is called |
- A. An asset
- B. A gain
- C. An expense
- D. A liability
|
| 8 |
The accounting system in which accounting entries are made on the basis of amount having become due for payment or receipt, is called |
- A. Cash system
- B. Accrual or mercantile system
- C. Outstanding system
- D. None of these
|
| 9 |
Bad debts recovered from debtors should be credited to |
- A. Debtors a/c
- B. Bad debts a/c
- C. Bad debts recovered a/c
- D. Cash a/c
|
| 10 |
The debts, the recovery or realization of which is uncertain are known as |
- A. Bad bets
- B. Doubtful debts
- C. Provision for doubtful debts
- D. Loan
|
