1 |
Net purchases are equal to |
- A. Sales - returns outwards
- B. Purchases + returns inwards
- C. Purchases - returns outwards
- D. Purchases + returns outwards
|
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 |
Cost incurred to generate revenue is called |
- A. Revenue
- B. Cost
- C. Expense
- D. Liability
|
4 |
Allowance for doubtful debts normally has a |
- A. Debit balance
- B. Credit balance
- C. Both debit & credit balance
- D. None of these
|
5 |
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
|
6 |
Net sales equal to |
- A. Sales - Returns outwards
- B. Sales + Returns inwards
- C. Sales - Returns inwards
- D. Purchases - Returns inwards
|
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 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
|
9 |
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
|
10 |
All expenses connected with the office and its conduct are called |
- A. Selling expenses
- B. Marketing expenses
- C. Service expenses
- D. Administrative expenses
|