Question:

Claims against company pending in court case. It is a

A.

Current Liability

B.

Current Asset

C.

Contingent Liability

D.

Un-secured Loan

Answer» c. Contingent Liability

Question:

House Building advance of 2.00 lakh paid to employees. It is a

A.

Asset

B.

Revenue Expenditure

C.

Capital Expenditure

D.

Deferred Revenue Expenditure

Answer» a. Asset

Question:

Insurance claim received on account of machinery damaged completely by fire is

A.

Capital receipt

B.

Revenue receipt

C.

Capital expenditure

D.

Revenue expenditure

Answer» a. Capital receipt

Question:

Advertising expenses for launching a new product of the company is____________.

A.

Revenue expenditure

B.

Capital expenditure

C.

Deferred revenue expenditure

D.

Deferred capital expenditure

Answer» c. Deferred revenue expenditure

Question:

Import duty of raw material purchased is a

A.

Revenue Expenditure

B.

Capital Expenditure

C.

Deferred Revenue Expenditure

D.

None of the above

Answer» a. Revenue Expenditure

Question:

Endowment fund receipt is treated as

A.

Capital Receipt

B.

Revenue Receipt

C.

Loss

D.

Expenses

Answer» a. Capital Receipt

Question:

An expenditure is in capital nature when

A.

the receiver of the amount is going to treat it for the purchase of fixed assets.

B.

it increase the quantity of fixed assets.

C.

it is paid as interests on loans for the business

D.

it maintains a fixed assets

Answer» a. the receiver of the amount is going to treat it for the purchase of fixed assets.

Question:

Del Credere Commission in consignment business is generally payable on

A.

Total sales

B.

only on credit sales.

C.

other than credit sales

D.

% on recovery of bad debt.

Answer» a. Total sales

Question:

Prepaid rent is a

A.

Nominal Account

B.

Representative Personal Account

C.

Tangible Assets Account

D.

None of the above

Answer» b. Representative Personal Account

Question:

Sales of 6,570 is recorded in the sales book as 6,750. Such Error is known as

A.

Error of Principle

B.

Error of Omission

C.

Error of Commission

D.

Compensating Error

Answer» c. Error of Commission