Accounting MCQs / Q&A

Cash received from debtors would be deemed as___________of funds.

A. No flow
B. Sources
C. Uses
D. Gain

Expenses of the following nature are treated as a Revenue expenses except__________?

A. Expenses for day to day running of the business
B. Putting the new asset in working condition
C. Depreciation
D. Purchase of raw material

Which of these types of expenditure would not be treated as a Capital Expenditure?

A. Acquisition of an Asset
B. Extension of an Asset
C. Improvement of the existing Asset
D. Maintenance of the Asset

Which of the following is a capital expenditure?

A. Repair of plant and machinery
B. Salary paid to workers
C. Cost of stand by equipment
D. Annual whitewash of the office building

Which of the following is a revenue expenses?

A. Raw material consumed
B. Plant purchased
C. Long term loan raised from bank
D. Capital

Revenue is generally recognized as being earned at that point of time when?

A. sale is effected
B. cash is received
C. production is completed
D. debts are collected

Revenue receipts are shown in___________?

A. Balance Sheet
B. Profit and Loss appropriation A/c
C. Manufacturing A/c
D. Trading and Profit and Loss A/c

Capital expenses are shown in___________?

A. Balance Sheet
B. Profit and Loss A/c
C. Trading A/c
D. None of these

The periodic total of purchase day book is posted to____________?

A. Purchase register
B. Purchase A/c
C. Cash purchase A/c
D. Credit purchase A/c

The periodic total of sales day book is posted to___________?

A. Sales A/c
B. Cash sales A/c
C. Sales return A/c
D. Credit sales A/c