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 is incurred to increase to profit earning capacity of a business concern, is called Deferred expenditure Current expenditure Capital expenditure Recurring expenditure
2 An expenditure, which is non-recurring and irregular is called Capital expenditure Revenue expenditure Short-term expenditure Current expenditure
3 Transaction, having short-term effects are known as Revenue transaction Capital transaction Non-monetary transaction Paper transaction
4 The transactions, the effect of which is not exhausted with in the current accounting year are called Revenue transaction Capital transaction Current transaction Monetary transaction
5 It is the price of goods sold or services provided by a business to its customers Asset Cost Capital Revenue
6 The amount invested by the owner in the business to produce revenue is known as Income Asset Capital Liability
7 From the business point of view, interest on drawings is An asset An expense A liability A revenue
8 Allowance for doubtful debts normally has a Debit balance Credit balance Both debit & credit balance None of these
9 Allowance for discount on account receivable is calculated on the amount of account receivable Before deducting the allowance for doubtful debts Left after deducting the allowance for doubtful debts Before deducting the actual bad debts None of these
10 Which one of the following is a direct expense? Packing expense Advertisement expense Manufacturing expense Traveling expense
11 Income statement is prepared to ascertain the net result of the business concern under British accounting system American accounting system Cash system of accounting None of these
12 Net sales - cost of goods sold - operating expenses = ? Net purchases Cost of goods sold available for sale Net operating income Gross Profit
13 All expenses connected with the office and its conduct are called Selling expenses Marketing expenses Service expenses Administrative expenses
14 The expenses which are incurred for the generation of revenues from the sales of goods are called Non-operating expenses Selling expenses Operation expenses Administrative expenses
15 The margin that is available to cover the other expenses for a period and to yield net income is known as Net profit Gross profit Net sales Cost of goods sold
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