| 1 |
The margin that is available to cover the other expenses for a period and to yield net income is known as |
- A. Net profit
- B. Gross profit
- C. Net sales
- D. Cost of goods sold
|
| 2 |
Net purchases are equal to |
- A. Sales - returns outwards
- B. Purchases + returns inwards
- C. Purchases - returns outwards
- D. Purchases + returns outwards
|
| 3 |
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
|
| 4 |
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
|
| 5 |
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
|
| 6 |
From the business point of view, interest on drawings is |
- A. An asset
- B. An expense
- C. A liability
- D. A revenue
|
| 7 |
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
|
| 8 |
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
|
| 9 |
The inflow of assets in return for services performed or products delivered during a period is |
- A. Asset
- B. Revenue
- C. Non current asset
- D. None of these
|
| 10 |
Cost incurred to generate revenue is called |
- A. Revenue
- B. Cost
- C. Expense
- D. Liability
|
