Question # 1

Raw material destroyed in fire represents

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capital loss

revenue loss

normal loss

both b, c

If the gross profit is Rs. 5000 and the net profit is 35% of the gross profit then the expenses must be

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3250

1250

3750

1750

Errors which affect one account can be

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errors of principle

errors of posting

errors of omission

none of these

Net profit is always

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Equal to gross profit

more than gross profit

Less than gross profit

None of these

The amount of assets, liabilities, capital and drawings are extended form adjusted trail balance to the

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Balance sheet columns

Income statement columns

Cash columns

Bank columns

The process of totaling the data at the end of the period is called

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posting

casting

compensating

recording

The process of recording business transaction in the journal is called

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Posting

Journalizing

Classifying

Entry

Net sales equal to

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Sales - Returns outwards

Sales + Returns inwards

Sales - Returns inwards

Purchases - Returns inwards

The book in which all cash transactions are primarily recorded is called

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Cheque Book

Pass Book

Cash Book

Finance Book

Some expenses are incurred at the time of the sate of an asset. The Amount will be debited to:

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Assets account

Expenses account

Cash account

Purchases account

Errors of affect one account can be

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Errors of principle

Errors of posting

Errors of omission

None of these

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

Reliization account is opened to find out gain or loss at the time of.

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Admisson of a new partner

Retirement of the partner

Death of the partners

None of these

Subcription received during the current year is.

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An income

An expenditure

An asset

An liability.

Surplus balance cna be shown in the balnce sheet as.

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Asset

Liability

Owner's equity

None of these

The losses arise in consignment transactions, such as loss of goods in transit, theft, goods damaged or destroyed by fire etc are.

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Normal losses

Additional loss

Abnormal losses

Both abnormal and normal loss

To make provision for the replacement of the assets. the method is to be ysed is.

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Written down value method

Annuity method

Sinking fund method

Insurance policy method

In the books of consignee the sale of goods by the consigee credited to.

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Sales account

Consignor account

Consignee's account

None of these

At the end of the year non trading institutions prepare.

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Profit and loss account

Income and expenditure account

Manufacturing account

None of the above

The dividend paid to the shareholders during the finaincial year is.

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Final dividend

Interim divident

Unclaimed divident

Proposed dividend

Joint stock company is an Artificaial person created by

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Law

Federal Govt

Registrar

Employees

A situation where a company receives application for a less number of shares than offered to the public for subscription is termed as.

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Oversubscription

Under subscription

No subscription

None of these

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