1- Bill for repairs not yet paid is:
A). An outstanding expense✔️
B). An accrued income
C). A prepaid expense
D). An unearned income
2-In balance sheet rent outstanding should appear on:
A). Asset side
B). Liabilities side✔️
C). Debit side
D). None of the above
3- Wages paid for installing a machine should be debited to:
A). Machinery account✔️
B). Wages account
C). Cash account
D). Both machinery and wages account
4- In balance sheet prepaid expenses should be appear as:
A). Liabilities
B). Incomes
C). Expenses
D). Assets✔️
5-In balance sheet, pre received income is shown on:
A). Debit side
B). Liability side✔️
C). Both A &B
D). None of these
6- Net profit is always:
A). Equal to gross profit
B). More than gross profit
C). Less than gross profit✔️
D). Parallel to gross profit
7- Net loss is always:
A). Than gross loss✔️
B). Less than gross loss
C). Equal to gross loss
D). Parallel to gross loss
8- While making the adjusting entry in respect of depreciation, machinery account is:
A). Debited
B). Credited✔️
C). Both A & B
D). None of the above
9- Outstanding Wages are shown as:
A). An expense
B). A liability✔️
C). An asset
D). An income
10- While making an adjusting entry in respect of closing stock, we debit:
A). Closing stock✔️
B). Trading Account
C). Purchases Account
D). Opening stock
11- While making an adjusting entry in respect of interest on capital, we credit:
A). Interest on capital account
B). Capital account✔️
C). Profit and loss account
D). Trading account
12- When a customer became business debtor the amount due from him is called:
A). Loan
B). Allowance
C). Bad debt
D). Debts✔️
13- The debts which cannot recovered from the debtors, are called:
A). Debts
B). Loans
C). Bad debts✔️
D). Allowances
14- Bad debts is a business:
A). Asset
B). Liability
C). Loss✔️
D). Profit
15- The bad debts which are appearing in the trial balance only to be debited to:
A). Balance sheet
B). Profit and loss account✔️
C). Trading account
D). Debtors account
16- No adjustment is required for any bad debt which is appearing already in the:
A). Trial Balance✔️
B). Profit and Loss Account
C). Balance sheet
D). None of these
17- The debts, the recovery or realization of which is doubtful or uncertain, are known as:
A). Debts
B). Bad debts
C). Doubtful debts✔️
D). None of these
18- The amount setting a side out of profit for a possible loss or liability is called as:
A). Debts
B). Provision✔️
C). Interest
D). Doubtful debts
19-Bad debts is debited to:
A). Debtors account
B). Creditors account
C). Bad debts account✔️
D). Cash account
20- Bad debt recovered is credited to:
A). Debtors account
B). Bad debts recovered account✔️
C). Provision for bad debts account
D). Creditor account
21- Provision for doubtful debts is debited to:
A). Debtors account
B). Bad debts recovered account
C). Profit and loss account✔️
D). Provision for bad debts account
22- Adjusting entries are made at the end of each business:
A). Day
B). Week
C). Year✔️
D). Hours
23- Provision, for bad debts account normally has a:
A). Debit balance
B). Credit balance✔️
C). Both debit and credit balances
D). None of these
24- From the business point of view, the discount allowed to customers is:
A). A profit
B). A loss✔️
C). An asset
D). A liability
25- Business give a cash discount, on making prompt paying to its:
A). Debtors✔️
B). Creditors
C). Investors
D). Partners
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