Question # 1

A bill from the point of view of a creditor is called a:

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Bill payable

Bill receivable

Bil acceptable

Bill rejectable

Cost incurred to generate revenue is called

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Revenue

Cost

Expense

Liability

The money with which business is started is known as:

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Capital

Creditor

Income

Debtor

______ is prepared to avoid errors in the permanent records of accounting

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Work sheet

Ledger

Bank statement

Balance sheet

The transaction for which non separate book is maintained are recorded in:

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Journal proper

Bills receivable book

Bills payable book

Cash book

Allowance for discount on account receivable is calculated on the amount of account receivable

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Before deducting the allowance for doubtful debts

Left after deducting the allowance for doubtful debts

Before deducting the actual bad debts

None of these

How many parties are involved in case of Discounting of a bill ?

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Two

Three

Four

None of these

Unearned income are known as:

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Incomes

Expenses

Liabilities

Assets

The person to whom a bill is addressed is the:

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Debtor

Creditor

Holder

Agent

All the transactions related to credit sales are recorded in

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Sales returns book

Sales book

Cash book

Credit note book

Wages paid of installing a machine should be debited to

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Wages a/c

cash a/c

Machinery a/c

None of these

An expenditure incurred in increasing the efficiency of a fixed asset is called:

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Revenue expenditure

Capital expenditure

Current expenditure

None of these

The accounting system in which accounting entries are made on the basis of amount having become due for payment or receipt, is called

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Cash system

Accrual or mercantile system

Outstanding system

None of these

The accrued income or outstanding income will appear in the balance sheet as

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An expense

A liability

An asset

Both a & b

Income statement is prepared to ascertain the net result of the business concern under

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British accounting system

American accounting system

Cash system of accounting

None of these

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