Question # 1

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

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

Preliminary expenses incurred before the commencement of business

Choose an answer

revenue expenditure

capital expenditure

deferred revenue expenditure

capital loss

Capital contributed by the partners is a:

Choose an answer

Revenue receipt

Capital receipt

Current receipt

Deferred receipt

The outflow of funds to meet the running expenses of a business

Choose an answer

Revenue loss

Revenue expenditure

capital expenditure

capital loss

Wrong allocation of capital and revenue items of expenses represents

Choose an answer

error of casting

error of principle

compensation error

error of commission

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

Unearned income are known as:

Choose an answer

Incomes

Expenses

Liabilities

Assets

Raw material destroyed in fire represents

Choose an answer

capital loss

revenue loss

normal loss

both b, c

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

Receipts which are non-recurring by nature:

Choose an answer

Capital receipts

Revenue receipts

Short term receipts

Capital profit

Bad debts are

Choose an answer

deferred expenditure

revenue expenditure

capital expenditure

none of these

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

Capitalized expenditures are shown in

Choose an answer

trading A/c

profit & loss A/c

income statement

balance sheet

A receipt is revenue receipt because

Choose an answer

the amount is small

it relates to routine activity of business

it is received in the accounting year

both b, c

The revenue profit should be transferred to:

Choose an answer

Balance sheet

Trading account

Profit and loss account

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

Which account will be created in the presence of suspense account, if sales book is undercast by Rs. 500

Choose an answer

suspense A/c

sales A/c

cash A/c

none of above

A receipt is revenue in nature, if it relates to:

Choose an answer

Balance sheet

The receipt of accounting year

Small amount

Routine activity of the business

Some expenses are incurred at the time of the sate of an asset. The Amount will be debited to:

Choose an answer

Assets account

Expenses account

Cash account

Purchases account

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

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer