| 1 |
The amount of assets, liabilities, capital and drawings are extended form adjusted trail balance to the |
- A. Balance sheet columns
- B. Income statement columns
- C. Cash columns
- D. Bank columns
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| 2 |
Net profit is always |
- A. Equal to gross profit
- B. more than gross profit
- C. Less than gross profit
- D. None of these
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| 3 |
The system of accounting in which accounting entries are made only when cash received or paid is known as |
- A. Cash system
- B. Accrual system
- C. Mercantile system
- D. Single system
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| 4 |
A transaction has been journalized but posted wrongly in the ledger account, it is an: |
- A. Error of positing
- B. Error of principle
- C. Error of omission
- D. Error of commission
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| 5 |
Cost incurred to generate revenue is called |
- A. Revenue
- B. Cost
- C. Expense
- D. Liability
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| 6 |
Cash account is a |
- A. Personal account
- B. Nominal account
- C. Real account
- D. Both personal and real account
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| 7 |
______ must be prepaid for testing ledger accounts, adjusting entries and financial statement |
- A. Work sheet
- B. Balance sheet
- C. Bank statement
- D. Trail balance
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| 8 |
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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| 9 |
Bill receivable account is a: |
- A. Nominal account
- B. Personal account
- C. Real account
- D. Expenses account
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| 10 |
If sales are Rs. 12000 Gross profit is 10% of sales and net profit is 5% of sales then the expenses will be |
- A. 1200
- B. 600
- C. 1800
- D. 2400
|