| 1 |
The capital profit should be transferred to: |
- A. Profit and loss account
- B. Trading account
- C. Balance Sheet
- D. Both Trading and profit and loss account and balance sheet
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| 2 |
Suspense means |
- A. certainty
- B. uncertainty
- C. surly
- D. none of these
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| 3 |
The revenue profit should be transferred to: |
- A. Balance sheet
- B. Trading account
- C. Profit and loss account
- D. None of these
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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 |
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
|
| 7 |
Capital contributed by the partners is a: |
- A. Revenue receipt
- B. Capital receipt
- C. Current receipt
- D. Deferred receipt
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| 8 |
A credit sale was wrongly passed through purchases book, the rectification of the entry will: |
- A. Increase the net profit by, double amount
- B. Decrease the net profit
- C. Decrease the net profit by double amount
- D. Have no effect on the net profit
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| 9 |
Any expenditure incurred to increase the earning capacity of a business |
- A. capital expenditure
- B. capital loss
- C. revenue loss
- D. revenue expenditure
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| 10 |
Some expenses are incurred at the time of the sate of an asset. The Amount will be debited to: |
- A. Assets account
- B. Expenses account
- C. Cash account
- D. Purchases account
|