Question # 1

Depreciation of fixed assets used in the business is an example of

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capital expenditure

Revenue expenditure

Deferred expenditure

None of these

Office rent is a

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Financial Expense

Abnormal Loss

Management Expense

Maintenance Expense

Interest on drawings is

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An asset

A liability

An expense

A revenue

Error which affects profit and loss account relates to

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Nominal account

Property account

Personal account

None of these

The concession given by the supplier to the buyer on purchases of good is known as:

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Sales discount

Trade discount

Purchase discount

Discount received

The accrued income or outstanding income will appear in the balance sheet as

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An expense

A liability

An asset

Both a & b

Errors, which do not affect on profit calculation, will have an effect only on

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Trail balance

Balance sheet

Profit or loss account

Trading account

Loss of good by fire should be credited to:

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Purchase account

Sales account

Loss by goods by fire account

Capital account

Errors of affect one account can be

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Errors of principle

Errors of posting

Errors of omission

None of these

Interest on renewal of a bill is the expense of

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Drawer

Drawee

Holder

Endorsee

A balance sheet is a

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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

An expenditure, which increases the utility or productive capacity of an asset is treated as

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Revenue expenditure

Capital expenditure

Deferred expenditure

None of these

All cash purchases and cash sales are recorded in

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Cash book

Purchases book

Sales book

Purchases and sales book

A many buy Rs. 40,000 worth good and sells them for Rs. 50,000. His gross profit is:

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Rs.10,000

Rs.20,000

Rs,30,000

Rs. 40,000

It is the price of goods sold or services provided by a business to its customers

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Asset

Cost

Capital

Revenue

Adjusting entries affect

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Balance sheet

Income statement

Work sheet

All of them

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

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