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 An expenditure, which increases the utility or productive capacity of an asset is treated as Revenue expenditure Capital expenditure Deferred expenditure None of these
2 A revenue expenditure, the benefit of which is not confined to one accounting year is called Non-current expenditure Revenue expenditure Future expenditure Deferred expenditure
3 Cost of redecorating a cinema hall is a Capital expenditure Capital loss Revenue expenditure None of these
4 Octori duty paid on machinery, is an example of Revenue expenditure Recurring expenditure Capital expenditure Both a & b
5 Bad debts are Deferred expenditure Revenue expenditure Capital expenditure None of these
6 An expenditure, incurred to improve the position of the business is known as Deferred expenditure Revenue expenditure Capital expenditure Recurring expenditure
7 All revenue expenditure are taken to Trading a/c Trading & profit or Loss a/c Profit or loss a/c Balance sheet
8 Depreciation of fixed assets used in the business is an example of capital expenditure Revenue expenditure Deferred expenditure None of these
9 Which one of the following is appeared in the balance sheet Revenue expenditure Capital expenditure Deferred expenditure Both b & c
10 Expenditure, which helps to maintain the business efficiency is called Revenue expenditure Deferred expenditure Capital expenditure Future expenditure
11 Expenditure is revenue expenditure because It is intended to benefit the current period The amount involved is small It is deducted from the gross sale proceeds None of these
12 Expenditure is a capital expenditure because The amount involved is heavy It is the personal expenditure of the owner out of his capital It is intended to benefit the future period It is a recurring expenditure
13 An expenditure, which is temporarily increase the profit making capacity of the business is called Deferred expenditure Capital expenditure Revenue expenditure Non-recurring expenditure
14 An expenditure, which is completely exhausted with in the current accounting period is known as Deferred expenditure Revenue expenditure Future expenditure Non-recurring expenditure
15 Wages paid for the construction of building is an example of Revenue expenditure Capital expenditure Recurring expenditure Short-term expenditure
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