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

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Principles of accounting Icom Part 1 English Medium Online Test

Sr. # Questions Answers Choice
1 Interest due but not received is an Outstanding expense Accrued income Prepaid expense Unearned income
2 From business point of view, Interest on capital is considered as An income An expense A profit A liability
3 Deprecation is A Liability A loss An expense Both b & c
4 A gradual decrease in the value of fixed assets is called Reduction Revaluation Deprecation None of these
5 Outstanding expense given in adjustment is called An asset A gain An expense A liability
6 The accrued income or outstanding income will appear in the balance sheet as An expense A liability An asset Both a & b
7 A prepaid expense is An asset A liability An expense An income
8 The revenue that has not become due, but received in cash in current year is known as Revenue received in advance Accrued revenue Unearned revenue Both a & c
9 An income which has earned but not received is called Unearned income Accrued revenue Revenue received in advance None of these
10 All those expenses which have not become due but paid in advance are called Accrued expenses Outstanding expenses Prepaid expenses Payable expenses
11 The accounting system in which accounting entries are made on the basis of amount having become due for payment or receipt, is called Cash system Accrual or mercantile system Outstanding system None of these
12 All those expenses which have become due but not paid are called Accrued revenue Prapaid revenue Outstanding expenses Advance expenses
13 The system of accounting in which accounting entries are made only when cash received or paid is known as Cash system Accrual system Mercantile system Single system
14 A balance sheet is a Statement of income and expenditure Statement of debtors and creditors Financial statement of a business on a particular date Statement of profit earned by a busniess
15 Expenses related to sale of goods are shown in Trading account Profit or loss account Balance sheet Sales account
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