Question # 1

The favourable balance of bank statement is

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Credit Balance

Debit Balance

Zero Balance

Both b and c

The expenditures which reduce revenue (profit) of the business are:

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Revenue expenditures

Capital expenditure

Fixed expenditures

Future expenditures

When cash is received from debtor or customer, generally a receipt is issued to the debtor which is called

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Payment voucher

Receipt voucher

Cash voucher

None of these

Income tax paid is a

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Business expense

Revenue for business

Liability of business

Personal expense

It is prepared to determine the net profit or net loss

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Trading account

Profit or loss account

Cash book

Balance sheet

Net profit is always

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Equal to gross profit

More than gross profit

Less than gross profit

None of these

An expenditure, which is temporarily increase the profit making capacity of the business is called

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Deferred expenditure

Capital expenditure

Revenue expenditure

Non-recurring expenditure

A document given by the seller to the buyer for credit sale of goods or assets is called

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Cash memo

Invoice

Voucher

None of these

From the business point of view, interest on drawings is

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An asset

An expense

A liability

A revenue

For every debit, there is a credit

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going concern concept

dual aspect concept

matching concept

cost concept

In the preparation of worksheet the amounts in the trail balance are taken directly form the ______

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Ledger

Trail balance

Balance sheet

None of these

Those debentures which carry no security as to payment of interest or repayment of principal, are known as.

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Morgagage debentures

Secured debentures

Simple of naked debentures

None of these

The closing balance of trade debtors can be located from.

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Total debtors account

Balance sheet

Bils receivable account

Cash book

In receipt and payments account

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No narration is written

No ledger reference is recorded

Daily cash balance cannot be ascertained

All of the above

A company comes into existence when the registrar issue the

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Prospectus

Certificate of incorporation

statement in Lieu of prospectus

Companies ordinance

How many methods are available to calculate the profit or loss under single entry system,

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One

Two

Three

Four

When the incoming partner pays the firm for good willin cash the amount should be debited to firms books to.

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Good will accounts

Cash Account

Capital account of the incoming partner

All of the above

Acceptance received durinthe period must be debited to bills receivable account and credited to.

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Total bills receivable account

Total debtors account

total cash account

Total bills receivabel account

In case of dissolution, assets sold for cash are debited to

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Realization account

Cash account

Assets account

None of these

The agreement among the partners which sets out the term is which they have agreed to form a partnership is called.

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Partnership deed

Aribtrartio clause

Partnership at will

None of these

Premium on issue of share is a.

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Capital profit

Business loss

Revenue profit

Revenue loss

Income and expenditure account shows.

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Surplus or deficit

Not profit or net loss

Capital account

Cash in hand

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