Question:

On which of the following asset, depreciation is charged on ‘Depletion method’

A.

Goodwill

B.

Plant and Machinery

C.

Land and Building

D.

Wasting asset like mine and quarries

Answer» d. Wasting asset like mine and quarries

Question:

Which one of the following character is not related to Financial Accounting?

A.

Evaluates the financial strength of the whole business.

B.

Based on monetary transactions of the enterprise

C.

Reports are always subject to statutory audit.

D.

Reports are as per requirement of management.

Answer» d. Reports are as per requirement of management.

Question:

Joint venture account is of the nature of

A.

Personal account

B.

Nominal account

C.

Real account

D.

Suspense account

Answer» b. Nominal account

Question:

5,000 incurred for up gradation of computer by installation of 128 MB Ram is

A.

Revenue expenditure

B.

Deferred revenue expenditure

C.

Capital expenditure

D.

None of the above

Answer» c. Capital expenditure

Question:

The Consignment Accounting is made on the following basis

A.

Cash basis

B.

Realisation basis

C.

Accrual basis

D.

None of the above

Answer» c. Accrual basis

Question:

Which of the following is artificial personal account?

A.

SBI account

B.

Wages paid account

C.

Discount received account

D.

Drawings account

Answer» a. SBI account

Question:

The process of transfer of entries from day book to ledger is called as

A.

Balancing

B.

Journal Posting

C.

Transaction

D.

Ledger Posting

Answer» d. Ledger Posting

Question:

Amount set apart to meet loss due to bad debt is a

A.

Provision

B.

Appropriation

C.

Reserve

D.

Commission

Answer» a. Provision

Question:

Any revenue expense for which a separate fund is available will be

A.

capitalised and shown in the balance sheet.

B.

debited to income and expenditure account.

C.

debited to the separate fu

Answer» c. debited to the separate fu

Question:

Payment of Bills of Exchange is received

A.

by drawer

B.

by holder in due course of due date

C.

by endorsee

D.

by bank

Answer» b. by holder in due course of due date