Question:

Journal proper uses to record _________________.

A.

bad debts recovered

B.

all cash purchases of assets other than goods

C.

writing of bad debts

D.

purchase of goods on credit

Answer» b. all cash purchases of assets other than goods

Question:

M/s. A.B. Enterprises has bank balance 8,800 as per cash book and the followings were found: (a) Three cheques deposited in bank for 5,800 but only one cheque for 2,000 was cleared. (b) Dividend collected by Bank 1,250 was wrongly entered in cash book as 1,520. What is balance as per pass book?

A.

3,480

B.

4,730

C.

2,730

D.

3,750

Answer» b. 4,730

Question:

Provision for bad debt is made as per the

A.

Entity concept

B.

Conservatism concept

C.

Cost concept

D.

Going concern concept

Answer» b. Conservatism concept

Question:

Accounting cycle ends with preparation of______________.

A.

the journal/ledger

B.

the trial balance

C.

the financial statement

D.

the closing entries record

Answer» d. the closing entries record

Question:

The Depreciation Account is closed at the end of the year by transfer to the

A.

General Reserve a/c

B.

Profit and Loss a/c

C.

Provision for Depreciation a/c

D.

Fixed Asset a/c

Answer» b. Profit and Loss a/c

Question:

Which one of the following is an external cause for depreciation

A.

Over use

B.

Abnormal occurrence

C.

Time element

D.

Obsolescence

Answer» d. Obsolescence

Question:

The abnormal loss on consignment is credited to:

A.

Profit and Loss Account

B.

Consignee’s Account

C.

Consignment Account

D.

Insurance Company Account

Answer» c. Consignment Account

Question:

Capital expenditures are shown in the

A.

Balance Sheet

B.

Profit & Loss a/c

C.

Trading a/c

D.

Manufacturing a/c

Answer» a. Balance Sheet

Question:

Which of these is/are recurring (indirect) expenses?

A.

Transit Insurance and Freight

B.

Octroi

C.

Loading and Unloading

D.

Godown Rent and Insurance

Answer» d. Godown Rent and Insurance

Question:

Life membership fees received by a club is a

A.

Revenue Expenditure

B.

Capital Expenditure

C.

Deferred Revenue Expenditure

D.

Capital Receipt

Answer» d. Capital Receipt