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

A. General journal
B. Cash journal
C. Purchase journal
D. Purchase return journal

Capital expenditure is an expenditure which

A. Benefits the current accounting period
B. Will benefit the next accounting period
C. Results in the acquisition of a permanent asset
D. Results in the acquisition of a current asset

A capital expenditure is a non- recurring expenditure whose benefit lasts for more than
one accounting period. Example is the acquisition of a fixed or permanent assets.

Depreciation decreases____________?

A. Liabilities
B. Cash
C. Bank
D. Capital

Which column of a cash book will not have credit balance___________?

A. Bank column
B. Discount column
C. Cash column
D. None

A. Discounting of the bill with the bank
B. Payment of the bill on due date
C. Remitting or receiving the amount
D. Sending the bill to bank for collection
(c ) In case of accommodation bills, the additional entry that is to be passed other than the
usual entries passed with regard to trade bills in the books of the drawer is in respect of (c )
remitting or receiving the amount at the time of discounting the bill and honouring the bill at
maturity. The entries passed are the same in case of discounting the bill with the bank A. and no
additional entry is passed except for sending the of proceeds to the drawee. On payment of
the bill on due date B. no additional entry is passed in the books of the drawer. If the bill is sent to the bank for collection, D. the purpose behind the accommodation bill is defeated. However, no additional entry is required to be passed at the time of sending the bill to the bank for collection D.. Thus, C. is the correct answer.

Specialized journals are more adequate for which TYPE OF BUSINESSES?

A. Small businesses
B. Big businesses
C. Sole proprietorship
D. Partnership