| 1 |
Capital contributed by the partners is a: |
- A. Revenue receipt
- B. Capital receipt
- C. Current receipt
- D. Deferred receipt
|
| 2 |
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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| 3 |
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
|
| 4 |
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
|
| 5 |
Goods sold to Ali for Rs. 50,000 recorded in purchases day book will affect |
- A. purchases A/c
- B. sales account
- C. purchases, sales & Ali account
- D. purchases & sales account
|
| 6 |
Wrong allocation of capital and revenue items of expenses represents |
- A. error of casting
- B. error of principle
- C. compensation error
- D. error of commission
|
| 7 |
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
|
| 8 |
Error of posting effects: |
- A. One account
- B. Two accounts
- C. Three accounts
- D. Four accounts
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| 9 |
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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| 10 |
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
|