1 |
Net purchases are equal to |
- A. Sales - returns outwards
- B. Purchases + returns inwards
- C. Purchases - returns outwards
- D. Purchases + returns outwards
|
2 |
Net sales equal to |
- A. Sales - Returns outwards
- B. Sales + Returns inwards
- C. Sales - Returns inwards
- D. Purchases - Returns inwards
|
3 |
From the business point of view, interest on drawings is |
- A. An asset
- B. An expense
- C. A liability
- D. A revenue
|
4 |
Cost incurred to generate revenue is called |
- A. Revenue
- B. Cost
- C. Expense
- D. Liability
|
5 |
Allowance for doubtful debts normally has a |
- A. Debit balance
- B. Credit balance
- C. Both debit & credit balance
- D. None of these
|
6 |
Which one of the following is a direct expense? |
- A. Packing expense
- B. Advertisement expense
- C. Manufacturing expense
- D. Traveling expense
|
7 |
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
|
8 |
Net sales - cost of goods sold - operating expenses = ? |
- A. Net purchases
- B. Cost of goods sold available for sale
- C. Net operating income
- D. Gross Profit
|
9 |
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
|
10 |
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
|