| 1 |
Net profit is always |
- A. Equal to gross profit
- B. More than gross profit
- C. Less than gross profit
- D. None of these
|
| 2 |
Interest on drawings is |
- A. An asset
- B. A liability
- C. An expense
- D. A revenue
|
| 3 |
All those expenses which have become due but not paid are called |
- A. Accrued revenue
- B. Prapaid revenue
- C. Outstanding expenses
- D. Advance expenses
|
| 4 |
Provision for the doubtful debts is debited to |
- A. Debtors a/c
- B. Provision for bad debts a/c
- C. Profit or loss a/c
- D. Bad debts recovered a/c
|
| 5 |
All those expenses which have not become due but paid in advance are called |
- A. Accrued expenses
- B. Outstanding expenses
- C. Prepaid expenses
- D. Payable expenses
|
| 6 |
Bad debts are business |
- A. Expenses
- B. Liabilities
- C. Assets
- D. Revenue
|
| 7 |
From business point of view, Interest on capital is considered as |
- A. An income
- B. An expense
- C. A profit
- D. A liability
|
| 8 |
Income tax paid is a |
- A. Business expense
- B. Revenue for business
- C. Liability of business
- D. Personal expense
|
| 9 |
Wages paid of installing a machine should be debited to |
- A. Wages a/c
- B. cash a/c
- C. Machinery a/c
- D. None of these
|
| 10 |
Bad debts recovered from debtors should be credited to |
- A. Debtors a/c
- B. Bad debts a/c
- C. Bad debts recovered a/c
- D. Cash a/c
|
