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Accounting MCQs / Q&A

Any gain on the sale of non-current assets should be _________ from the net profit and the loss must be _________to the net profit in determining fund from operation?

Any gain on the sale of non-current assets should be _________ from the net profit and the loss must be _________to the net profit in determining fund from operation?

A. Added, Reduced
B. Added, Added
C. Deducted, Added
D. Deducted, Deducted

Any gain on the sale of non-current assets should be _________ from the net profit and the loss must be _________to the net profit in determining fund from operation? Read More »

Accounting MCQs / Q&A

Which of the following enhances the earning capacity of an asset?

Which of the following enhances the earning capacity of an asset?

A. Increase in working capacity of an asset
B. Reduction in operating costs
C. Replacing damaged parts of an asset
D. Both A. and C. above

Enhancement of earning capacity can be by way of replacement of worn out or damaged parts which retarded the earning capacity and increase in the working capacity increases the earning capacity of the asset.

Which of the following enhances the earning capacity of an asset? Read More »

Accounting MCQs / Q&A

Which one of the following is a capital expenditure?

Which one of the following is a capital expenditure?

A. Compensation paid to Directors on termination of their services
B. Expenditure incurred in connection with the renewal of a Trade Mark.
C. Gratuities paid to Directors on termination of their services.
D. Royalty paid in installments for the purchase of rights to manufacture and sell patient medicines.

Which one of the following is a capital expenditure? Read More »

Accounting MCQs / Q&A