| 1 |
Net loss is always |
- A. Equal to gross loss
- B. More than gross loss
- C. Less than gross loss
- D. None of these
|
| 2 |
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
|
| 3 |
From business point of view, Interest on capital is considered as |
- A. An income
- B. An expense
- C. A profit
- D. A liability
|
| 4 |
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
|
| 5 |
Deprecation is |
- A. A Liability
- B. A loss
- C. An expense
- D. Both b & c
|
| 6 |
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
|
| 7 |
The amount becomes due from the customers is called |
- A. Allowance
- B. Loan
- C. Debts
- D. Doubtful debts
|
| 8 |
The debts, which are irrecoverable from the debtors, are called |
- A. Debts
- B. Doubtful debts
- C. Bad debts
- D. Good debts
|
| 9 |
A prepaid expense is |
- A. An asset
- B. A liability
- C. An expense
- D. An income
|
| 10 |
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
|
