Question # 1

Deprecation is

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A Liability

A loss

An expense

Both b & c

The revenue that has not become due, but received in cash in current year is known as

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Revenue received in advance

Accrued revenue

Unearned revenue

Both a & c

Patent is an example of

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Assets

Liabilities

Income

Expense

The accounting system in which accounting entries are made on the basis of amount having become due for payment or receipt, is called

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Cash system

Accrual or mercantile system

Outstanding system

None of these

Income tax paid is a

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Business expense

Revenue for business

Liability of business

Personal expense

Net loss is always

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Equal to gross loss

More than gross loss

Less than gross loss

None of these

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

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An income

An expense

A profit

A liability

Bad debts recovered from debtors should be credited to

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Debtors a/c

Bad debts a/c

Bad debts recovered a/c

Cash a/c

The system of accounting in which accounting entries are made only when cash received or paid is known as

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Cash system

Accrual system

Mercantile system

Single system

A gradual decrease in the value of fixed assets is called

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Reduction

Revaluation

Deprecation

None of these

Interest on drawings is

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An asset

A liability

An expense

A revenue

Interest due but not received is an

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Outstanding expense

Accrued income

Prepaid expense

Unearned income

The accrued income or outstanding income will appear in the balance sheet as

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An expense

A liability

An asset

Both a & b

The amount becomes due from the customers is called

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Allowance

Loan

Debts

Doubtful debts

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

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Principles of accounting Icom Part 1 English Medium Chapter 10 Online Test MCQs With Answers

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