Question:

Goods taken from business for personal use by the proprietor should be credited to

A.

Drawing a/c

B.

Capital a/c

C.

Sales a/c

D.

Purchase a/c

Answer» d. Purchase a/c

Question:

Narration is given at the end of

A.

Final accounts

B.

Trial balance

C.

Each ledger account

D.

Each journal entry

Answer» d. Each journal entry

Question:

The periodical total of Returns Inward Day Book is posted to 5

A.

Debit of Sales Account

B.

Debit of Sales Return Account

C.

Credit of Sales Return Account

D.

Debit of Debtors Account

Answer» b. Debit of Sales Return Account

Question:

________________________is not objective of accounting.

A.

Gives accurate information

B.

Keeps records in systematic manner

C.

Analyses recorded data

D.

Ascertain financial position of business

Answer» a. Gives accurate information

Question:

Income tax of the sole trade paid is shown

A.

Debited to P & L Account

B.

Debited to Trading Account

C.

Debited to his Capital Account

D.

None of the above

Answer» c. Debited to his Capital Account

Question:

An expenditure is capital in nature when

A.

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

B.

It increases the quantity of fixed assets.

C.

It is paid as interest on loans for the business.

D.

It maintains of fixed asset.

Answer» b. It increases the quantity of fixed assets.

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