Question # 1

In adjusting the cash balance one of the following is not taken into account:

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Mistakes in the cash book

Mistake in the bank statement

Interest and dividends credited in the bank statement

None of the abvove

Income tax paid is a

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Business Expense

Business Revenue

Business Liability

Personal Expense

Financial accounting is mainly confined to preparation of:

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Manufacturing statement

Financial statements

Production statement

Sale statement

Net Profit is transferred to

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Trading Account

Balance Sheet

Capital a/c

Trial Balance

Bad debts recovered should be credited to

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Balance Sheet

Trading a/c

Profit & Loss a/c

None of these

The concession given by the supplier to the buyer on purchases of good is known as:

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Sales discount

Trade discount

Purchase discount

Discount received

Gross profit represents

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Opening stock + purchases

closing stock + direct expenses - sales

closing stock-purchases-direct expenses + sales

purchases - sales

The bad debts which are showed in the trial balance are called

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new bad debts

old bad debts

further bad debts

additional bad debts

The const concept applied only to the assets and not to:

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Expenses

Liabilities

Incomes

None of these

Gross profit is derived from

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Trading a/c

Profit & Loss a/c

Trial Balance

Balance Sheet

The payments side of the cash book is undercast by Rs. 200, when overdraft as per bank statement i s the starting points:

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Rs. 200 will be deducted

Rs. 200 will be added

Rs. 400 will be added

Rs. 400 will be deducted

Net Sales represent

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Sales - return outwards

Sales - return inwards

Sales - return to supplier

both b and c

Rent account' is a kind of:

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Real account

Personal account

Nominal account

Capital account

Wages paid for installing a machine should be debited to

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Wages a/c

Cash a/c

Machinery a/c

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

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Principles of accounting Icom Part 1 English Medium Chapter 5 Online Test MCQs With Answers

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