| 1 |
A prepaid expense is |
- A. An asset
- B. A liability
- C. An expense
- D. An income
|
| 2 |
Bad debts are business |
- A. Expenses
- B. Liabilities
- C. Assets
- D. Revenue
|
| 3 |
Deprecation is |
- A. A Liability
- B. A loss
- C. An expense
- D. Both b & c
|
| 4 |
Net profit is always |
- A. Equal to gross profit
- B. More than gross profit
- C. Less than gross profit
- D. None of these
|
| 5 |
Net loss is always |
- A. Equal to gross loss
- B. More than gross loss
- C. Less than gross loss
- D. None of these
|
| 6 |
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
|
| 7 |
A gradual decrease in the value of fixed assets is called |
- A. Reduction
- B. Revaluation
- C. Deprecation
- D. None of these
|
| 8 |
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
|
| 9 |
Interest due but not received is an |
- A. Outstanding expense
- B. Accrued income
- C. Prepaid expense
- D. Unearned income
|
| 10 |
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
|
