| 1 |
The accounting system in which accounting entries are made on the basis of amount having become due for payment or receipt, is called |
- A. Cash system
- B. Accrual or mercantile system
- C. Outstanding system
- D. None of these
|
| 2 |
Income tax paid is a |
- A. Business expense
- B. Revenue for business
- C. Liability of business
- D. Personal expense
|
| 3 |
Net loss is always |
- A. Equal to gross loss
- B. More than gross loss
- C. Less than gross loss
- D. None of these
|
| 4 |
The system of accounting in which accounting entries are made only when cash received or paid is known as |
- A. Cash system
- B. Accrual system
- C. Mercantile system
- D. Single system
|
| 5 |
Net profit is always |
- A. Equal to gross profit
- B. More than gross profit
- C. Less than gross profit
- D. None of these
|
| 6 |
All those expenses which have become due but not paid are called |
- A. Accrued revenue
- B. Prapaid revenue
- C. Outstanding expenses
- D. Advance expenses
|
| 7 |
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
|
| 8 |
The debts, which are irrecoverable from the debtors, are called |
- A. Debts
- B. Doubtful debts
- C. Bad debts
- D. Good debts
|
| 9 |
Patent is an example of |
- A. Assets
- B. Liabilities
- C. Income
- D. Expense
|
| 10 |
The accrued income or outstanding income will appear in the balance sheet as |
- A. An expense
- B. A liability
- C. An asset
- D. Both a & b
|
