Question # 1

Bad debts are

Choose an answer

deferred expenditure

revenue expenditure

capital expenditure

none of these

If sales return for Rs. 3,000 were incorrectly included in sales book, gross profit will be

Choose an answer

overstated by Rs. 3,000

understated by Rs. 6,000

understated by Rs. 3,000

overstated by Rs. 6,000

Error of principle involves an incorrect allocation of expenditure or receipt between.

Choose an answer

Capital and revenue

Capital and capitalized

Revenue and deferred revenue

Revenue and revenue

Any difference in trial balance is transferred to

Choose an answer

sales account

nominal account

purchases account

suspense account

Acceptance to Mr. A was posted to the debit of B's account. The rectification of the entry will.

Choose an answer

Increase the net profit

Decrease the net profit

Have double effect on net profit

Have no effect on net profit

An error completely omitted to be entered in the journal

Choose an answer

partial error

error of posting

error of casting

complete error

Wrong allocation of capital and revenue items of expenses represents

Choose an answer

error of casting

error of principle

compensation error

error of commission

The capital profit should be transferred to:

Choose an answer

Profit and loss account

Trading account

Balance Sheet

Both Trading and profit and loss account and balance sheet

Goods sold to Ali for Rs. 50,000 recorded in purchases day book will affect

Choose an answer

purchases A/c

sales account

purchases, sales & Ali account

purchases & sales account

An expenditure incurred in increasing the efficiency of a fixed asset is called:

Choose an answer

Revenue expenditure

Capital expenditure

Current expenditure

None of these

Suspense means

Choose an answer

certainty

uncertainty

surly

none of these

Goods purchased from Robin have been posted to Rahim account, it is an:

Choose an answer

Error of omission

Error of casting

Error of posting

Error of commission

The process of totaling the data at the end of the period is called

Choose an answer

posting

casting

compensating

recording

If the error committed in the capital account, it will affect

Choose an answer

trading account

profit & loss account

trading and profit & loss account

balance sheet

A credit sale was wrongly passed through purchases book, the rectification of the entry will:

Choose an answer

Increase the net profit by, double amount

Decrease the net profit

Decrease the net profit by double amount

Have no effect on the net profit

More Classes

Other Links

Principles of accounting Icom Part 1 English Medium Chapter 6 Online Test MCQs With Answers

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer