| 1 |
Income statement is prepared to ascertain the net result of the business concern under |
- A. British accounting system
- B. American accounting system
- C. Cash system of accounting
- D. None of these
|
| 2 |
Net sales - cost of goods sold - operating expenses = ? |
- A. Net purchases
- B. Cost of goods sold available for sale
- C. Net operating income
- D. Gross Profit
|
| 3 |
A statement which is prepared to know the financial position of a business on a particular date, is called |
- A. Balance sheet
- B. Statement of condition
- C. Position statement
- D. All of above
|
| 4 |
Cost of goods sold is equal to |
- A. sales - purchases
- B. purchases + closing stock - returns outwards
- C. Opening stock - closing stock + purchase + returns inwards
- D. Opening stock + purchases - returns outwards - closing stock
|
| 5 |
All expenses connected with the office and its conduct are called |
- A. Selling expenses
- B. Marketing expenses
- C. Service expenses
- D. Administrative expenses
|
| 6 |
From the business point of view, interest on drawings is |
- A. An asset
- B. An expense
- C. A liability
- D. A revenue
|
| 7 |
Which one of the following is a direct expense? |
- A. Packing expense
- B. Advertisement expense
- C. Manufacturing expense
- D. Traveling expense
|
| 8 |
Which one of the following is a direct expense? |
- A. Custom duty
- B. Carriage
- C. Wages
- D. All of above
|
| 9 |
Allowance for doubtful debts normally has a |
- A. Debit balance
- B. Credit balance
- C. Both debit & credit balance
- D. None of these
|
| 10 |
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
|
