| 1 |
Receipts, which are non-recurring by nature, are called |
- A. revenue receipts
- B. current receipts
- C. capital receipts
- D. capital profit
|
| 2 |
The process of totaling the data at the end of the period is called |
- A. posting
- B. casting
- C. compensating
- D. recording
|
| 3 |
Which account will be created in the presence of suspense account, if sales book is undercast by Rs. 500 |
- A. suspense A/c
- B. sales A/c
- C. cash A/c
- D. none of above
|
| 4 |
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
|
| 5 |
The outflow of funds to meet the running expenses of a business |
- A. Revenue loss
- B. Revenue expenditure
- C. capital expenditure
- D. capital loss
|
| 6 |
Raw material destroyed in fire represents |
- A. capital loss
- B. revenue loss
- C. normal loss
- D. both b, c
|
| 7 |
Errors which affect one account can be |
- A. errors of principle
- B. errors of posting
- C. errors of omission
- D. none of these
|
| 8 |
Suspense means |
- A. certainty
- B. uncertainty
- C. surly
- D. none of these
|
| 9 |
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
|
| 10 |
Error of principle involves an incorrect allocation of expenditure or receipt between. |
- A. Capital and revenue
- B. Capital and capitalized
- C. Revenue and deferred revenue
- D. Revenue and revenue
|