| 1 |
Unearned income are known as: |
- A. Incomes
- B. Expenses
- C. Liabilities
- D. Assets
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| 2 |
Error of principle involves an incorrect allocation of expenditure or receipt between. |
- A. Capital and revenue
- B. Capital and capitalized
- C. Revenue and deferred revenue
- D. Revenue and revenue
|
| 3 |
Capitalized expenditures are shown in |
- A. trading A/c
- B. profit & loss A/c
- C. income statement
- D. balance sheet
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| 4 |
Raw material destroyed in fire represents |
- A. capital loss
- B. revenue loss
- C. normal loss
- D. both b, c
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| 5 |
A receipt is revenue in nature, if it relates to: |
- A. Balance sheet
- B. The receipt of accounting year
- C. Small amount
- D. Routine activity of the business
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| 6 |
The profit which is earned during the ordinary course of business is regarded as: |
- A. Capital profit
- B. Revenue profit
- C. Revenue loss
- D. Long term profit
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| 7 |
If sales return for Rs. 3,000 were incorrectly included in sales book, gross profit will be |
- A. overstated by Rs. 3,000
- B. understated by Rs. 6,000
- C. understated by Rs. 3,000
- D. overstated by Rs. 6,000
|
| 8 |
A receipt is revenue receipt because |
- A. the amount is small
- B. it relates to routine activity of business
- C. it is received in the accounting year
- D. both b, c
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| 9 |
Preliminary expenses incurred before the commencement of business |
- A. revenue expenditure
- B. capital expenditure
- C. deferred revenue expenditure
- D. capital loss
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| 10 |
If the error committed in the capital account, it will affect |
- A. trading account
- B. profit & loss account
- C. trading and profit & loss account
- D. balance sheet
|