| 1 |
The system of accounting in which accounting entries are made only when cash received or paid is known as |
- A. Cash system
- B. Accrual system
- C. Mercantile system
- D. Single system
|
| 2 |
Income tax paid is a |
- A. Business expense
- B. Revenue for business
- C. Liability of business
- D. Personal expense
|
| 3 |
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
|
| 4 |
The debts, which are irrecoverable from the debtors, are called |
- A. Debts
- B. Doubtful debts
- C. Bad debts
- D. Good debts
|
| 5 |
The amount becomes due from the customers is called |
- A. Allowance
- B. Loan
- C. Debts
- D. Doubtful debts
|
| 6 |
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
|
| 7 |
A gradual decrease in the value of fixed assets is called |
- A. Reduction
- B. Revaluation
- C. Deprecation
- D. None of these
|
| 8 |
A prepaid expense is |
- A. An asset
- B. A liability
- C. An expense
- D. An income
|
| 9 |
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
|
| 10 |
Bad debts are business |
- A. Expenses
- B. Liabilities
- C. Assets
- D. Revenue
|
