Question # 1

Error of principle involves an incorrect allocation of expenditure or receipt between.

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Capital and revenue

Capital and capitalized

Revenue and deferred revenue

Revenue and revenue

The recording of transaction chronologically in the book of accounts is called:

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Summarizing

Classifying

Recording

None of above

All revenue expenditure are taken to

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Trading a/c

Trading & profit or Loss a/c

Profit or loss a/c

Balance sheet

Depreciation of fixed assets used in the business is an example of

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capital expenditure

Revenue expenditure

Deferred expenditure

None of these

All those expenses which have not become due but paid in advance are called

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Accrued expenses

Outstanding expenses

Prepaid expenses

Payable expenses

From business point of view, interest on capital is considered as

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An income

An Expense

A Profit

A Liability

Any difference in trail balance, is transferred to

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Sales account

Nominal account

Purchases account

Suspense account

When a drawer discounts a bill, he debits

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Bank Account

Interest Account

Drawee Account

Bill Receivable Account

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

Loss of good by fire should be credited to:

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Purchase account

Sales account

Loss by goods by fire account

Capital account

the profit on consignment in the books of the consignor should be deited to.

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Consignnment account

Profit and loss account

Consignee 's account

None of these

Share capital int he balance sheet is known as.

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Asset

Liability

Income

Reserve

The loss prior to the date of incorporation of a company is.

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Revenue loss

Capital loss

Liability

None of these

As per the decision in Garner Va. Murray the solvent partner bring in cash equal to their share of.

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Realization loss

Profit ratio

Capital ratio

None of these

Under the conversion method of single entry credit salea are ascertained by preparing the.

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Total debtors account

Total creditors account

Total cash account

Total bills receivable account

Registraion of the firm.

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It is legally necessary

It is optional

It depends on the will of the partners

It depends uopon the will of theemployee

Under diminhing balance method, depreciationis calculated on.

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The original cost

The scrape value

Book value

All of the above

Normaly the discount on the shares should not exceed from

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Five percent

Eight percent

Twenty percent

Ten percent

premium on issue of shares is shown in.

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Assets side of balance sheet

Liabilities side of balance sheet

Trading account

Profit and loss account

A statement of assets and liabilities is prepared under the single entery system is called.

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Balance sheet

Financial statement

Statement of affair

Cash transaction

Under annuity method the amount of depreciation is.

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Increasing every year

Decreasing every year

Fixed for all the year

None of these

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