| 1 |
The inflow of assets in return for services performed or products delivered during a period is |
- A. Asset
- B. Revenue
- C. Non current asset
- D. None of these
|
| 2 |
Income statement is prepared to ascertain the net result of the business concern under |
- A. British accounting system
- B. American accounting system
- C. Cash system of accounting
- D. None of these
|
| 3 |
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
|
| 4 |
Which one of the following is a direct expense? |
- A. Packing expense
- B. Advertisement expense
- C. Manufacturing expense
- D. Traveling expense
|
| 5 |
The gross amount of goods sold or services performed during an accounting period is known as |
- A. Purchase
- B. Sale
- C. Gross profit
- D. Net profit
|
| 6 |
From the business point of view, interest on drawings is |
- A. An asset
- B. An expense
- C. A liability
- D. A revenue
|
| 7 |
The expenses which are incurred for the generation of revenues from the sales of goods are called |
- A. Non-operating expenses
- B. Selling expenses
- C. Operation expenses
- D. Administrative expenses
|
| 8 |
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
|
| 9 |
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
|
| 10 |
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
|
