Question # 1

The concession given by the supplier to the buyer on purchases of good is known as:

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Sales discount

Trade discount

Purchase discount

Discount received

Wages paid for installing a machine should be debited to

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Wages a/c

Cash a/c

Machinery a/c

none of these

Rent account' is a kind of:

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Real account

Personal account

Nominal account

Capital account

Bad debts recovered should be credited to

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Balance Sheet

Trading a/c

Profit & Loss a/c

None of these

The bad debts which are showed in the trial balance are called

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new bad debts

old bad debts

further bad debts

additional bad debts

In adjusting the cash balance one of the following is not taken into account:

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Mistakes in the cash book

Mistake in the bank statement

Interest and dividends credited in the bank statement

None of the abvove

Goodwill, patent, copyright are classified as

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Current Assets

Fixed Assets

Tangible Assets

Wasting Assets

Office rent is a

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Financial Expense

Abnormal Loss

Management Expense

Maintenance Expense

Net Profit is transferred to

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Trading Account

Balance Sheet

Capital a/c

Trial Balance

Interest on drawing is debited to

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Capital

Drawings

Sundry Creditors

Outstanding expense

The money with which business is started is known as:

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Capital

Creditor

Income

Debtor

Assets having some market value

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Fictitious Assets

Real Assets

Unreal Assets

None of these

From business point of view, interest on capital is considered as

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An income

An Expense

A Profit

A Liability

Income received in advance during the year is

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Prepaid Expenses

Accrued Income

Advance Expenses

Advance Income

The payments side of the cash book is undercast by Rs. 200, when overdraft as per bank statement i s the starting points:

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Rs. 200 will be deducted

Rs. 200 will be added

Rs. 400 will be added

Rs. 400 will be deducted

Gross profit is derived from

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Trading a/c

Profit & Loss a/c

Trial Balance

Balance Sheet

Loss of good by fire should be credited to:

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Purchase account

Sales account

Loss by goods by fire account

Capital account

Profit & Loss a/c is prepared to ascertain

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Gross Profit

Net Profit

Gross Loss

Real Profit

Net profit is always

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Equal to gross profit

more than gross profit

Less than gross profit

None of these

The const concept applied only to the assets and not to:

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Expenses

Liabilities

Incomes

None of these

The balance of the 'Caha Column' in cash book is always:

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Debit balance

Credit balance

Both debit and credit balance

None of the above

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Principles of accounting Icom Part 1 English Medium Chapter 5 Online Test MCQs With Answers

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