Question:

Which of the following items are shown in the income and expenditure account?

A.

Only items of capital nature.

B.

Only items of revenue nature which are received during the period of accounts.

C.

Only items of revenue nature pertaining to the period of accounts.

D.

Both the items of capital and revenue nature.

Answer» c. Only items of revenue nature pertaining to the period of accounts.

Question:

Closing stock appearing in the trial balance is shown in

A.

Trading A/c and Balance sheet

B.

Profit and Loss A/c

C.

Balance Sheet only

D.

Trading A/c only

Answer» c. Balance Sheet only

Question:

As regards the accounting treatment, Legacy should be

A.

treated as loss

B.

capitalized

C.

treated Revenue Expenses

D.

treated Deferred Revenue

Answer» b. capitalized

Question:

The value of an asset after deducting depreciation from the historical cost is known as

A.

Fair value

B.

Market value

C.

Net realizable value

D.

Book value

Answer» d. Book value

Question:

Identify the Personal Account from the following

A.

Salary Payable Account

B.

Taxes paid account

C.

Investment Account

D.

Trademark Account

Answer» a. Salary Payable Account

Question:

Errors in carry forward of closing balances from one year to another which affects

A.

Nominal accounts

B.

Real accounts

C.

Personal accounts

D.

Both (B) and (C)

Answer» d. Both (B) and (C)

Question:

Which financial statement represents the a ccounting equation as – Assets = Liabilities +Owner’s equity?

A.

Income Statement

B.

Statement of Cash Flows

C.

Balance Sheet

D.

Either (A) or (B)

Answer» c. Balance Sheet