1- Business received discount from its:
A). Debtors
B). Creditors✔️
C). Investors
D). Partners
2- The provision for bad debts is made by crediting:
A). Profit and Loss Account
B). Debtors Account
C). Creditors Account
D). Provision for bad debts Account✔️
3- The provision for discount on creditors is often not provided in keeping with the principle of:
A). Materiality
B). Consistency
C). Conservatism✔️
D). Realization
4- One way of avoiding errors in the permanent Accounting records, is to use a form, called:
A). Bank statement
B). Work sheet✔️
C). Balance sheet
D). Journal form
5- A working paper of accountants, prepared by lead pencil is:
A). Work sheet✔️
B). Balance sheet
C). Income Statement
D). General journal
6- Which one of the following is not consider the permanent part of the accounting record:
A). Journal
B). Trial Balance
C). Balance sheet
D). Work sheet✔️
7- A working paper which is prepared by the accountant for his own convenience is called:
A). Work sheet
B). Cash flows statement
C). Balance sheet✔️
D). Final accounts
8- The amount invested by the person in the business to produce revenue is said to be:
A). Capital✔️
B). Revenue
C). Assets
D). Expense
9- The price of goods sold or services rendered by a business to its customers is known as:
A). Capital
B). Revenue✔️
C). Assets
D). Expense
10- Transaction having long term effect are known as:
A). Revenue transactions
B). Revenue expenditures
C). Capital expenditures
D). Capital transactions✔️
11- Transaction having short term effect are known as:
A). Revenue
B). Capital
C). Revenue transaction✔️
D). Capital transactions
12- Any expenditure that benefits the business for several accounting years is regarded us a:
A). Capital expenditure✔️
B). Revenue expenditure
C). Deferred expenditure
D). Current expenditure
13- Any expenditure that benefits the business only for one accounting year is considered a:
A). Capital expenditure
B). Revenue expenditure✔️
C). Future expenditure
D). Capital expenditure
14- Any expenditure which is not incurred repeatedly and regularly is a:
A). Revenue expenditure
B). Short term expenditure
C). Capital expenditure✔️
D). Current expenditure
15- Any expenditure which is incurred again and again is a:
A). Capital expenditure
B). Future expenditure
C). Deterred expenditure
D). Revenue expenditure✔️
16- Any expenditure incurred to the increase the profit earning capacity of the concern is a:
A). Revenue expenditure
B). Current expenditure
C). Capital receipt
D). Capital expenditure✔️
17-Any expenditure incurred to keep the activities of a concern going is:
A). Capital expenditure
B). Revenue receipt
C). Revenue expenditure✔️
D). Future expenditure
18- Expenditure incurred after buying second hand asset to bring it into proper working place is a:
A). Capital expenditure✔️
B). Revenue expenditure
C). Deferred expenditure
D). Capital loss
19- Expenditure incurred on the purchase and installation of a new asset is regarded as:
A). Revenue expenditure
B). Capital expenditure✔️
C). Revenue receipt
D). Revenue loss
20- If the goods or a service lost less than one year it is:
A). Revenue expenditure✔️
B). Capital expenditure
C). Revenue receipt
D). Capital receipt
21- If the goods or a service lost longer than one year, it is:
A). Revenue expenditure
B). Capital expenditure✔️
C). Revenue receipt
D). Capital receipt
22- Revenue expenditure the impact of which is likely to last for more than one year is:
A). Capital expenditure
B). Revenue expenditure
C). Deferred revenue expenditure✔️
D). None of these
23- Expenditure to maintain the asset is:
A). Capital expenditure
B). Revenue expenditure✔️
C). Future expenditure
D). Deferred revenue expenditure
24- Expenditure to improve the asset is:
A). Deferred revenue expenditure
B). Revenue expenditure
C). Current expenditure
D). Capital expenditure✔️
25- The expenditure reduce revenue (profit) of the business, are:
A). Revenue expenditure✔️
B). Capital expenditure
C). Fixed expenditure
D). Future expenditure
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