| 1 |
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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| 2 |
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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| 3 |
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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| 4 |
Which one of the following is appeared in the balance sheet ? |
- A. revenue expenditure
- B. capital expenditure
- C. deferred revenue
- D. both b,c
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| 5 |
If sales return for Rs. 3,000 were incorrectly included in sales book, gross profit will be |
- A. overstated by Rs. 3,000
- B. understated by Rs. 6,000
- C. understated by Rs. 3,000
- D. overstated by Rs. 6,000
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| 6 |
Bad debts are |
- A. deferred expenditure
- B. revenue expenditure
- C. capital expenditure
- D. none of these
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| 7 |
Preliminary expenses incurred before the commencement of business |
- A. revenue expenditure
- B. capital expenditure
- C. deferred revenue expenditure
- D. capital loss
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| 8 |
Error of posting effects: |
- A. One account
- B. Two accounts
- C. Three accounts
- D. Four accounts
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| 9 |
Raw material destroyed in fire represents |
- A. capital loss
- B. revenue loss
- C. normal loss
- D. both b, c
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| 10 |
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
|