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Quiz 11
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Q.1
Capital expenditures are recorded in the
Trading account
Profit & Loss account
Balance sheet
All of the above
Q.2
Recovery of bad debt is a
Revenue expenditure
Revenue receipt
Deferred expenses
Capital receipt
Q.3
No journal entry is required to be passed when there is
Loss by theft
Normal loss
Loss of bad debts
Abnormal loss of business
Q.4
There must be a gap of at least ___ month between two calls
3
1
6
2
Q.5
The basic consideration(s) in distinction between capital and revenue expenditure is/are
Nature of business
Effect on revenue generating capacity of the business
Purpose of expenses
All of the above
Q.6
"Treating a revenue expenditure as a capital expenditure" is an example of
Compensating error
Error of principle
Error of omission
Error of commission
Q.7
If an effect of an error is cancelled by the effect of some other error, it is commonly known as
Error of principle
Compensatory errors
Error of omission
Error of commission
Q.8
Liability for bill discounted is a
Contingent liability
Fixed liability
Current liability
None of the above
Q.9
Interest on debentures is calculated on
Purchase value of debentures
Market value of debentures
Face value of debentures
All of the above
Q.10
The parties to joint venture are called
Friends
Principal and agent
Partners
Co-ventures
Q.11
The owner of consignment stock is
Consignor
Consignee
Debtors
None of the above
Q.12
Which account is the odd one out?
Office furniture and equipment
Freehold land and building
Stock of raw materials
Plant and machinery
Q.13
X draws a bill on Y. X endorsed the bill to Z. ____ will be the payee of the bill.
X
Y
Z
None of the above
Q.14
___ days of grace are allowed in case of time bills, for calculating date of maturity
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4
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5
Q.15
A company cannot issue redeemable preference shares for a period exceeding
10 years
20 years
30 years
15 years
Q.16
The following error will affect the Trial Balance
Error of partial omission
Error of principle
Error of complete omission
All of the above
Q.17
Which reserve is not shown in the Balance sheet?
Secret reserve
General reserve
Capital reserve
All of the above
Q.18
Which liability is not included in the total of Balance Sheet?
Current liabilities
Contingent liabilities
Fixed liabilities
All of the above
Q.19
Bills receivable is a
Intangible fixed asset
Tangible fixed asset
Current asset
Investment
Q.20
The party who sends the goods for sales on fixed commission basis is known as
Drawer
Drawee
Payee
Consignor
Q.21
Difference of total of debit and credit side of the trial balance is transferred to
Suspense A/c
Difference A/c
P & L A/c
Trading A/c
Q.22
Municipal tax Rs.6000 under dispute is a
Contingent liability
Revenue expenditure
Current liability
Current asset
Q.23
Which of the following is a long term liability?
Outstanding expenses
Share capital
Debentures
All of the above
Q.24
Drawing is a type of
Expense
Withdrawal of capital
Income
None of the above
Q.25
Profit is a part of
Income
Owner's capital
Assets
All of the above
Q.26
Under diminishing balance method, depreciation
Is constant every year
Increases every year
Decreases every year
None of the above
Q.27
Legal expenses incurred on a suit for breach of contract to supply goods is a
Capital expenditure
Deferred Revenue expenditure
Revenue expenditure
Both 'b' and 'c'
Q.28
Income includes
Income earned
Income received
Income receivable
All of the above
Q.29
Cash Account is
Personal account
Real account
Nominal account
None of the above
Q.30
Heavy amount spent for the advertisement of new company product is
Revenue expenditure
Deferred Revenue expenditure
Capital expenditure
Either 'a' or 'c'
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