| 1 |
From the business point of view, interest on drawings is |
- A. An asset
- B. An expense
- C. A liability
- D. A revenue
|
| 2 |
The amount by which the revenue for a particular period of time exceed from expenses incurred to generate them is called |
- A. Gross income
- B. Net income
- C. Revenue
- D. Expenses
|
| 3 |
Cost of goods sold is equal to |
- A. sales - purchases
- B. purchases + closing stock - returns outwards
- C. Opening stock - closing stock + purchase + returns inwards
- D. Opening stock + purchases - returns outwards - closing stock
|
| 4 |
Allowance for discount on account receivable is calculated on the amount of account receivable |
- A. Before deducting the allowance for doubtful debts
- B. Left after deducting the allowance for doubtful debts
- C. Before deducting the actual bad debts
- D. None of these
|
| 5 |
The margin that is available to cover the other expenses for a period and to yield net income is known as |
- A. Net profit
- B. Gross profit
- C. Net sales
- D. Cost of goods sold
|
| 6 |
Allowance for doubtful debts normally has a |
- A. Debit balance
- B. Credit balance
- C. Both debit & credit balance
- D. None of these
|
| 7 |
All expenses connected with the office and its conduct are called |
- A. Selling expenses
- B. Marketing expenses
- C. Service expenses
- D. Administrative expenses
|
| 8 |
Sales are equal to |
- A. Cost of goods sold + Profit
- B. Gross profit - cost of goods sold
- C. Cost of goods sold - gross profit
- D. None of these
|
| 9 |
Which one of the following is a direct expense? |
- A. Custom duty
- B. Carriage
- C. Wages
- D. All of above
|
| 10 |
A statement which i prepared to ascertain the net income or net loss for a specific accounting period is called |
- A. Position statement
- B. Statement of condition
- C. Financial statement
- D. Bank reconciliation statement
|
