| 1 |
The profit which is earned during the ordinary course of business is regarded as: |
- A. Capital profit
- B. Revenue profit
- C. Revenue loss
- D. Long term profit
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| 2 |
Some expenses are incurred at the time of the sate of an asset. The Amount will be debited to: |
- A. Assets account
- B. Expenses account
- C. Cash account
- D. Purchases account
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| 3 |
Wrong allocation of capital and revenue items of expenses represents |
- A. error of casting
- B. error of principle
- C. compensation error
- D. error of commission
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| 4 |
A credit sale was wrongly passed through purchases book, the rectification of the entry will: |
- A. Increase the net profit by, double amount
- B. Decrease the net profit
- C. Decrease the net profit by double amount
- D. Have no effect on the net profit
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| 5 |
If the error committed in the capital account, it will affect |
- A. trading account
- B. profit & loss account
- C. trading and profit & loss account
- D. balance sheet
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| 6 |
An expenditure incurred in increasing the efficiency of a fixed asset is called: |
- A. Revenue expenditure
- B. Capital expenditure
- C. Current expenditure
- D. None of these
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| 7 |
Any expenditure incurred to increase the earning capacity of a business |
- A. capital expenditure
- B. capital loss
- C. revenue loss
- D. revenue expenditure
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| 8 |
The revenue profit should be transferred to: |
- A. Balance sheet
- B. Trading account
- C. Profit and loss account
- D. None of these
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| 9 |
The capital profit should be transferred to: |
- A. Profit and loss account
- B. Trading account
- C. Balance Sheet
- D. Both Trading and profit and loss account and balance sheet
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| 10 |
Goods purchased from Robin have been posted to Rahim account, it is an: |
- A. Error of omission
- B. Error of casting
- C. Error of posting
- D. Error of commission
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