| 1 |
Allowance for discount on account receivable is calculated on the amount of account receivable |
- A. Before deducting the allowance for doubtful debts
- B. Left after deducting the allowance for doubtful debts
- C. Before deducting the actual bad debts
- D. None of these
|
| 2 |
The gross amount of goods sold or services performed during an accounting period is known as |
- A. Purchase
- B. Sale
- C. Gross profit
- D. Net profit
|
| 3 |
A statement which i prepared to ascertain the net income or net loss for a specific accounting period is called |
- A. Position statement
- B. Statement of condition
- C. Financial statement
- D. Bank reconciliation statement
|
| 4 |
All expenses connected with the office and its conduct are called |
- A. Selling expenses
- B. Marketing expenses
- C. Service expenses
- D. Administrative expenses
|
| 5 |
The expenses which are incurred for the generation of revenues from the sales of goods are called |
- A. Non-operating expenses
- B. Selling expenses
- C. Operation expenses
- D. Administrative expenses
|
| 6 |
The amount by which the revenue for a particular period of time exceed from expenses incurred to generate them is called |
- A. Gross income
- B. Net income
- C. Revenue
- D. Expenses
|
| 7 |
Allowance for doubtful debts normally has a |
- A. Debit balance
- B. Credit balance
- C. Both debit & credit balance
- D. None of these
|
| 8 |
Which one of the following is a direct expense? |
- A. Packing expense
- B. Advertisement expense
- C. Manufacturing expense
- D. Traveling expense
|
| 9 |
Net purchases are equal to |
- A. Sales - returns outwards
- B. Purchases + returns inwards
- C. Purchases - returns outwards
- D. Purchases + returns outwards
|
| 10 |
Sales are equal to |
- A. Cost of goods sold + Profit
- B. Gross profit - cost of goods sold
- C. Cost of goods sold - gross profit
- D. None of these
|
