1- Gross loss is debited to:
A). Trading Account
B). Balance sheet
C). Cash Account
D). Profit and loss Account✔️
2- Wages and salaries are debited to:
A). Trading Account✔️
B). Profit and Loss Account
C). Balance sheet
D). Cash Account
3- Gross profit is credited to:
A). Trading Account
B). Profit and Loss Account✔️
C). Balance sheet
D). Both trading & profit and Loss Account
4- Closing stock is credited to:
A). Profit and Loss Account
B). Trading Account✔️
C). Balance sheet
D). Cash Account
5- Payment for the purchase is machinery I is termed as:
A). Expense
B). Expenditure✔️
C). Liability
D). Asset
6- Gross profit + Stock in the beginning + purchases+ Direct expenses – Stock at the end=?
A). Sales✔️
B). Cost of goods sold
C). Cost of goods available for sale
D). Net purchases
7- All expenses connected with the office and its conduct are called:
A). Selling expenses
B). Marketing expenses
C). Administrative expenses✔️
D). Services expenses
8- Permanency preference method is adopted by:
A). Sole proprietorship
B). Partnership
C). Banks
D). Joint stock companies✔️
9- The mixed method is adopted by:
A). Sole proprietorship
B). Partnership
C). Joint stock companies
D). Banks and insurance companies✔️
10- Every business concern ascertains profit or loss of the business at the end of the year through:
A). Journal
B). Ledger
C). Final account✔️
D). Bills of exchange
11- Expenses paid in advance before they have fallen due are called:
A). Prepaid expenses✔️
B). Outstanding expenses
C). Accrued expenses
D). Expenses payable
12- A prepaid expense is:
A). A liability
B). An asset
C). An income✔️
D). A management expense
13- The outstanding income or accrued income will appears in the balance sheet as:
A). A liability
B). An income
C). An expense
D). An asset✔️
14- Income received in advance but not earned is called:
A). Unearned income✔️
B). Prepaid revenue
C). Outstanding income
D). Accrued income
15- The credit balance of the income received in advance will be shown on the balance sheet as:
A). An asset
B). An expense
C). A liability✔️
D). An income
16- The gradual and permanent decrease in the value of an asset from any cause; is know as:
A). Reduction of assets
B). Revaluation of assets
C). Realization of assets
D). Depreciation✔️
17- From the business point of view, interest on capital is regarded as:
A). An income
B). An expense✔️
C). An asset
D). A profit
18- From the business point of view, interest on drawings is:
A). An asset of the business
B). An expense to the business
C). A liability of the business
D). A revenue to the business✔️
19- The unsold stock at the end of the year represents the:
A). Opening stock
B). Opening purchases
C). Closing stock✔️
D). Closing purchases
20- Commission received in advance is to consider as:
A). Outstanding expense
B). Accrue income
C). Prepaid expense
D). Unearned income✔️
21- Unpaid salaries are to be consider as:
A). Outstanding expenses✔️
B). Accrued income
C). Prepaid expenses
D). Unearned income
22- Insurance premium paid in advance is:
A). An outstanding expense
B). An accrued income✔️
C). A prepaid expense
D). An unearned income
23- Interest due but not received is:
A). An outstanding expense
B). An accrued income✔️
C). A prepaid expense
D). An unearned income
24- Rent due but not paid is to be:
A). An outstanding expense✔️
B). An accrued income
C). A prepaid expense
D). An unearned income
25- Discount to be received is:
A). An outstanding expense
B). An accrued income✔️
C). A prepaid expense
D). An unearned income
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