| 1 |
Expenditure is a capital expenditure because |
- A. The amount involved is heavy
- B. It is the personal expenditure of the owner out of his capital
- C. It is intended to benefit the future period
- D. It is a recurring expenditure
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| 2 |
Wages paid of installing a machine should be debited to |
- A. Wages a/c
- B. cash a/c
- C. Machinery a/c
- D. None of these
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| 3 |
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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| 4 |
Financial accounting is mainly confined to preparation of: |
- A. Manufacturing statement
- B. Financial statements
- C. Production statement
- D. Sale statement
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| 5 |
Bill receivable book represents |
- A. Ledger
- B. Journal
- C. Trail balance
- D. All of above
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| 6 |
A bill from the point of view of a creditor is called a: |
- A. Bill payable
- B. Bill receivable
- C. Bil acceptable
- D. Bill rejectable
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| 7 |
Cash account is a: |
- A. Personal account
- B. Real account
- C. Nominal account
- D. Both real and personal account
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| 8 |
A many buy Rs. 40,000 worth good and sells them for Rs. 50,000. His gross profit is: |
- A. Rs.10,000
- B. Rs.20,000
- C. Rs,30,000
- D. Rs. 40,000
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| 9 |
Accounting records of a business enterprise are required by |
- A. management of the business
- B. outsiders
- C. all of the above
- D. none of the above
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| 10 |
In case of a debt becoming bad, the amount should be credited to |
- A. Debtor's a/c
- B. Bad Debts a/c
- C. Sales a/c
- D. cash a/c
|