| 1 |
Errors which affect one account can be |
- A. errors of principle
- B. errors of posting
- C. errors of omission
- D. none of these
|
| 2 |
An expenditure incurred in increasing the efficiency of a fixed asset is called: |
- A. Revenue expenditure
- B. Capital expenditure
- C. Current expenditure
- D. None of these
|
| 3 |
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
|
| 4 |
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
|
| 5 |
Raw material destroyed in fire represents |
- A. capital loss
- B. revenue loss
- C. normal loss
- D. both b, c
|
| 6 |
Goods purchased from Robin have been posted to Rahim account, it is an: |
- A. Error of omission
- B. Error of casting
- C. Error of posting
- D. Error of commission
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| 7 |
Capitalized expenditures are shown in |
- A. trading A/c
- B. profit & loss A/c
- C. income statement
- D. balance sheet
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| 8 |
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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| 9 |
Suspense means |
- A. certainty
- B. uncertainty
- C. surly
- D. none of these
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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
|