-
question_answer1)
Balance sheet shows
A)
Gross profit of financial period done
clear
B)
Net profit of financial period done
clear
C)
Financial position on a particular data done
clear
D)
All real, personal and nominal accounts done
clear
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question_answer2)
Which of the following is a capital expenditure?
A)
Carriage paid on goods purchased done
clear
B)
Payment of compensation to a discharged employee done
clear
C)
Cost of formation of a new company done
clear
D)
Legal expenses incurred for abuse of trademark done
clear
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question_answer3)
The financial position of a business is ascertained by preparing
A)
trading account done
clear
B)
manufacturing account done
clear
C)
Balance sheet done
clear
D)
trial balance done
clear
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question_answer4)
Which of the following is debited to Trading Account?
A)
Rent done
clear
B)
Wages and Salaries done
clear
C)
Commission done
clear
D)
Salaries and Wages done
clear
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question_answer5)
Expenditure incurred on extension to an existing property is treated as.....
A)
revenue loss done
clear
B)
capital profit done
clear
C)
revenue expenditure done
clear
D)
capital expenditure done
clear
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question_answer6)
Sales are equal to
A)
Cost of goods sold + Profit done
clear
B)
Cost of goods sold - Gross profit done
clear
C)
Gross profit - Cost of goods sold done
clear
D)
Cost of goods sold + Closing Stock done
clear
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question_answer7)
Which one of the following is not a current asset?
A)
Debtors done
clear
B)
Prepaid expense done
clear
C)
Stock done
clear
D)
Office furniture done
clear
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question_answer8)
Final account is
A)
Ledger done
clear
B)
Account done
clear
C)
Statement done
clear
D)
Account and Statement done
clear
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question_answer9)
The excess of debit in trading account is called
A)
Net loss done
clear
B)
net profit done
clear
C)
Gross loss done
clear
D)
gross profit done
clear
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question_answer10)
Total amount of liabilities side include the following
A)
authorised capital done
clear
B)
issued capital done
clear
C)
subscribed capital done
clear
D)
paid-up capital done
clear
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question_answer11)
Liability of sole trader is
A)
limited done
clear
B)
unlimited done
clear
C)
undecided done
clear
D)
qualified done
clear
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question_answer12)
Assets are held in the business for the purpose of
A)
earning revenue done
clear
B)
resale done
clear
C)
conversion into cash done
clear
D)
appreciation in the value done
clear
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question_answer13)
Heavy advertising to launch a new product is a
A)
capital expenditure done
clear
B)
revenue expenditure done
clear
C)
deferred revenue expenditure done
clear
D)
None of the above done
clear
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question_answer14)
Freight inward appearing in trial balance is shown
A)
on the debit side of profit and loss account done
clear
B)
on the debit side of trading account done
clear
C)
on the liabilities side of balance sheet done
clear
D)
on the asset side of the balance sheet done
clear
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question_answer15)
If there is any debit balance in profit and loss account, it is shown as
A)
a deduction from reserves done
clear
B)
no treatment done
clear
C)
an addition to reserves done
clear
D)
None of the above done
clear
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question_answer16)
Drawings are deducted from
A)
sales done
clear
B)
purchases done
clear
C)
return outward done
clear
D)
capital done
clear
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question_answer17)
Income tax paid by Mr. A amounts to ` 3000. Its accounting treatment is
A)
to be credited to the profit and loss account done
clear
B)
to be ignored altogether done
clear
C)
to be deducted from capital done
clear
D)
to be debited to the trading account done
clear
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question_answer18)
Fs capital on 1st January, 2002 is ` 45000 interest on drawings is ` 5000 interest on capital is ` 2000 drawings are ` 14000, profit for the year is ` 15000. His capital as on 31.12.2002 is
A)
` 67000 done
clear
B)
` 47000 done
clear
C)
` 43000 done
clear
D)
` 69000 done
clear
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question_answer19)
A trial balance as at 31st December, 2002 contains the following information 12% bank loan ` 40000, interest paid as ` 3800. Interest debited to the profit and loss account is
A)
` 44000 done
clear
B)
` 5000 done
clear
C)
` 4800 done
clear
D)
` 1000 done
clear
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question_answer20)
Expenditure which results in acquisition of a permanent asset is a
A)
capital expenditure done
clear
B)
deferred revenue expenditure done
clear
C)
revenue expenditure done
clear
D)
None of the above done
clear
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question_answer21)
Subscription received in advance during the accounting year is
A)
an income done
clear
B)
an expense done
clear
C)
an asset done
clear
D)
a liability done
clear
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question_answer22)
Income and expenditure account shows a balance of
A)
cash in hand done
clear
B)
capital account done
clear
C)
net profit done
clear
D)
excess of revenue over expenditure or vice-versa done
clear
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question_answer23)
At the beginning of an accounting year, a club has assets worth ` 19000, liabilities ` 5000 and ` 1800 as the debit balance of the income and expenditure account. The opening capital is
A)
` 18000 done
clear
B)
` 15800 done
clear
C)
` 11200 done
clear
D)
` 24800 done
clear
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question_answer24)
Which of the following statements is not correct in relation to non-profit organisation?
A)
A non-profit organisation never undertakes trading activities done
clear
B)
A public library is a non-profit seeking accounting entity done
clear
C)
Revenue items are shown in the income and expenditure account done
clear
D)
Donations received for construction of an auditorium by a club is to be credited to a separate building fund account done
clear
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question_answer25)
If income is ` 16000 and deficit debited to capital fund is ` 4300, expenditure is
A)
` 20400 done
clear
B)
` 20300 done
clear
C)
` 43500 done
clear
D)
` 24400 done
clear
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question_answer26)
The closing balance of the receipts and payments account represents.
A)
closing cash in hand or cash at bank done
clear
B)
opening cash in hand done
clear
C)
Both and done
clear
D)
None of the above done
clear
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question_answer27)
Expenditure is shown on which side of the income and expenditure account.
A)
Credit done
clear
B)
Debit done
clear
C)
Both (a) and (b) done
clear
D)
None of the above done
clear
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question_answer28)
Represents the excess of assets over liabilities.
A)
Revenue fund done
clear
B)
Revenue expenditure done
clear
C)
Capital fund done
clear
D)
None of the above done
clear
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question_answer29)
Tournament expense should be
A)
Posted as expenditure done
clear
B)
Deducted from tournament fund done
clear
C)
Recorded as deferred revenue expenditure done
clear
D)
Recorded as capital asset done
clear
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question_answer30)
Entrance fee received (to be capitalised) ` 500, capital fund ` 40100. What amount will be posted in the income and expenditure account?
A)
` 500 done
clear
B)
` 40600 done
clear
C)
` 40100 done
clear
D)
None of these done
clear
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question_answer31)
If cost of goods sold is ` 1116000 and sales is these ` 1240000 then the amount of gross profit will be
A)
` 130000 done
clear
B)
` 124000 done
clear
C)
` 240000 done
clear
D)
` 84000 done
clear
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question_answer32)
What is the amount of gross profit when opening stock is ` 1200, closing stock is ` 750, sales is ` 30000, cost of goods sold is ` 22750?
A)
` 6500 done
clear
B)
` 7700 done
clear
C)
` 7250 done
clear
D)
` 5300 done
clear
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question_answer33)
What is the amount of closing stock when opening stock is ` 4500, cost of goods sold is ` 54500, purchase is ` 60000?
A)
` 19000 done
clear
B)
` 9000 done
clear
C)
` 10000 done
clear
D)
Nil done
clear
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question_answer34)
What is the amount of purchase when opening stock is ` 10000, closing stock is ` 8000, sales are ` 110000 and cost of goods sold is ` 80000?
A)
` 78000 done
clear
B)
` 82000 done
clear
C)
` 30000 done
clear
D)
` 92000 done
clear
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question_answer35)
What is the amount of gross profit or loss when cost of goods sold is ` 7900, sales worth ` 11000 and purchases are ` 3000?
A)
` 8000 done
clear
B)
` 3100 done
clear
C)
` 4900 done
clear
D)
` 100 (loss) done
clear
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question_answer36)
What is the purchase amount when opening stock is ` 3500, closing stock is ` 1500 and cost of goods sold is ` 22000?
A)
` 20000 done
clear
B)
` 27000 done
clear
C)
` 24000 done
clear
D)
` 17000 done
clear
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question_answer37)
Which of the following equation is correct?
A)
Closing Stock + Purchases - Opening Stock - Cost of Goods Sold = Zero done
clear
B)
Opening Stock - Closing Stock - Purchases + Cost of Goods Sold = Zero done
clear
C)
Purchases + Opening Stock - Closing Stock - Cost of Goods Sold = Zero done
clear
D)
Cost of Goods Sold - Closing Stock - Purchases - Opening Stock = Zero done
clear
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question_answer38)
The excess of the credit side of profit and loss account would indicate
A)
profit done
clear
B)
net loss done
clear
C)
loss done
clear
D)
None of these done
clear
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question_answer39)
Gross profit or gross loss is shown by
A)
trading account done
clear
B)
balance sheet done
clear
C)
profit and loss account done
clear
D)
All of the above done
clear
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question_answer40)
Net profit or net loss is shown by
A)
trading account done
clear
B)
balance sheet done
clear
C)
profit and loss account done
clear
D)
All of the above done
clear
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question_answer41)
The capital expenditure is shown in
A)
journal done
clear
B)
trading account done
clear
C)
profit and loss account done
clear
D)
balance sheet done
clear
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question_answer42)
Capital expenditure are also called
A)
deferred revenue expenditure done
clear
B)
recurring expenditure done
clear
C)
fixed expenditure done
clear
D)
balance sheet expenditure done
clear
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question_answer43)
Revenue expenditure is incurred
A)
to maintain the earning capacity of the business done
clear
B)
to prevent losses done
clear
C)
to maintain the reputation of the enterprise done
clear
D)
for satisfying the needs of the business done
clear
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question_answer44)
Capital expenditure is incurred
A)
to prevent unforeseen losses done
clear
B)
to improve the earning capacity of the business done
clear
C)
to maintain goodwill in the market done
clear
D)
None of the above done
clear
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question_answer45)
For an engineering concern, the expenditure on plant and machinery is a ......... expenditure, if the plant is meant for resale.
A)
Capital done
clear
B)
deferred revenue done
clear
C)
Revenue done
clear
D)
None of these done
clear
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question_answer46)
All the accounts pertaining to revenue and expenditure are
A)
Real accounts done
clear
B)
nominal accounts done
clear
C)
Personal accounts done
clear
D)
None of the above done
clear
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question_answer47)
Those business expenses which affect directly the profits for the accounting period are called
A)
Revenue expenditure done
clear
B)
Capital expenditure done
clear
C)
Deferred revenue expenditure done
clear
D)
None of the above done
clear
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question_answer48)
The revenue expenditure is shown in
A)
Profit and loss account done
clear
B)
Trading account done
clear
C)
Balance sheet done
clear
D)
All of the above done
clear
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question_answer49)
If a revenue expenditure is incurred during the year but paid as advance for the coming years, such expenditure is called
A)
Capital expenditure done
clear
B)
Revenue expenditure done
clear
C)
Deferred revenue expenditure done
clear
D)
All of the above done
clear
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question_answer50)
'Conversion into cash of any asset except stock' is a
A)
revenue receipt done
clear
B)
capital receipt done
clear
C)
recurring receipt done
clear
D)
None of the above done
clear
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question_answer51)
'Amount from sale of goods' is an example of
A)
revenue receipt done
clear
B)
capital receipt done
clear
C)
recurring receipt done
clear
D)
None of the above done
clear
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question_answer52)
The revenue loss is usually accounted for in the
A)
previous years profit and loss account done
clear
B)
current years profit and loss account done
clear
C)
current years balance sheet done
clear
D)
All of the above done
clear
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question_answer53)
Opening stock is added to the
A)
sales done
clear
B)
freight done
clear
C)
sales return done
clear
D)
purchase done
clear
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question_answer54)
Closing stock is added to the
A)
purchase done
clear
B)
freight done
clear
C)
sales done
clear
D)
opening stock done
clear
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question_answer55)
The business man purchased goods for ` 2000 but at present, its market value is ` 2500. It will be valued at
A)
` 2000 done
clear
B)
` 4500 done
clear
C)
` 2500 done
clear
D)
` 500 done
clear
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question_answer56)
Wages is shown on the .......... side of the trading account.
A)
Debit done
clear
B)
credit done
clear
C)
None of these done
clear
D)
All of these done
clear
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question_answer57)
If the expense is recorded as 'wages and salaries', it will go to
A)
balance sheet done
clear
B)
Trading account done
clear
C)
Profit and loss account done
clear
D)
None of the above done
clear
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question_answer58)
If the expense is recorded as 'salaries and wages', it will go to
A)
balance sheet done
clear
B)
trading account done
clear
C)
profit and loss account done
clear
D)
None of the above done
clear
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question_answer59)
The debit side of the profit and loss account shows
A)
expenses and losses done
clear
B)
incomes done
clear
C)
losses done
clear
D)
profits done
clear
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question_answer60)
Direct expenses are debited to
A)
balance sheet done
clear
B)
trading account done
clear
C)
profit and loss account done
clear
D)
None of the above done
clear
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question_answer61)
Bad debt is shown on the debit side of the
A)
balance sheet done
clear
B)
trading account done
clear
C)
profit and loss account done
clear
D)
None of the above done
clear
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question_answer62)
If discount allowed appears in the trial balance, it will be shown at the debit side of
A)
profit and loss account done
clear
B)
trading account done
clear
C)
balance sheet done
clear
D)
None of the above done
clear
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question_answer63)
Outstanding wages account is shown in the balance sheet on the ......... side.
A)
Assets done
clear
B)
liabilities done
clear
C)
Both and done
clear
D)
None of the above done
clear
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question_answer64)
Goodwill is
A)
Floating asset done
clear
B)
wasting asset done
clear
C)
Fictitious asset done
clear
D)
intangible asset done
clear
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question_answer65)
Calculate gross profit if it is 20% on sales and cost of goods is ` 150000
A)
` 24000 done
clear
B)
` 37500 done
clear
C)
` 20000 done
clear
D)
None of the above done
clear
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question_answer66)
Receipts and payments account records receipts and payments of
A)
Capital nature only done
clear
B)
revenue nature only done
clear
C)
capital and revenue nature both done
clear
D)
None of the above done
clear
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question_answer67)
Non-trading institutions prepare
A)
Profit and Loss Account done
clear
B)
Manufacturing Account done
clear
C)
Income and Expenditure Account done
clear
D)
All of the above done
clear
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question_answer68)
Receipt and payment account is
A)
a nominal account done
clear
B)
a real account done
clear
C)
a personal account done
clear
D)
a statement done
clear
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question_answer69)
Income and Expenditure account includes figures related to
A)
Previous year done
clear
B)
Current year done
clear
C)
future year done
clear
D)
All of these done
clear
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question_answer70)
Non-profit organisations prepare all of the following accounts except the
A)
income and expenditure account done
clear
B)
receipt and payment account done
clear
C)
balance sheet done
clear
D)
income statement done
clear
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question_answer71)
The receipt and payment account is ...... account
A)
nominal done
clear
B)
real done
clear
C)
personal done
clear
D)
None of these done
clear
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question_answer72)
Final accounts of not-for-profit organisation includes
A)
receipt and payment account done
clear
B)
trading and profit and loss account done
clear
C)
income and expenditure account done
clear
D)
Both (1) and (3) done
clear
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question_answer73)
Receipt and payment account is a summary of
A)
income and expenses done
clear
B)
cash receipts and payments done
clear
C)
balances of various ledger accounts done
clear
D)
None of the above done
clear
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question_answer74)
The income and expenditure account reveals
A)
surplus or deficiency done
clear
B)
cash in hand done
clear
C)
capital fund done
clear
D)
Both (1) and (2) done
clear
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question_answer75)
"The surplus of non-profit organisations are distributed among members". The above statement is
A)
False done
clear
B)
True done
clear
C)
Partly true done
clear
D)
Partly false done
clear
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question_answer76)
An amount or property received 'by a non-profit organisation as stated by the will of a deceased person is commonly referred to as
A)
endownment done
clear
B)
honorarium done
clear
C)
legacy done
clear
D)
donation done
clear
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question_answer77)
Credit balance in the income and expenditure account indicates excess of...........over..........
A)
expenditure, income done
clear
B)
cash income, cash expenses done
clear
C)
income, expenditure done
clear
D)
cash expenses, cash income done
clear
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question_answer78)
Excess of income over expenditure is ......... capital fund in the balance sheet.
A)
added to done
clear
B)
deducted from done
clear
C)
not added to done
clear
D)
not deducted from done
clear
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question_answer79)
Expenditure of Get Well hospital is ` 2, 50,000 and surplus credited to capital fund is ` 80,000. Income of the hospital is
A)
` 330000 done
clear
B)
` 170000 done
clear
C)
` 250000 done
clear
D)
None of these done
clear
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question_answer80)
Which of the following accounts will not be prepared by a non-profit organisation?
A)
Income arid expenditure account done
clear
B)
Receipt and payment account done
clear
C)
Trading and profit & loss account done
clear
D)
None of the above done
clear
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question_answer81)
Capital fund of non-profit organisations represents
A)
excess of expenditure over income done
clear
B)
excess of income over expenditure done
clear
C)
equality between income and expenditure done
clear
D)
None of the above done
clear
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question_answer82)
Receipts and payments account does not show
A)
rent paid during the year done
clear
B)
rent received during the year done
clear
C)
outstanding rent done
clear
D)
prepaid rent done
clear
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question_answer83)
Income and expenditure account is prepared by
A)
a partnership film done
clear
B)
a bank done
clear
C)
a trading concern done
clear
D)
a non-trading concern done
clear
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question_answer84)
Match the following
List I | List II |
A. | Finished goods | 1. | Are in the process of production |
B. | Work -in-progress | 2. | To be consumed in the production process |
C. | Raw material | 3. | Held for sale in ordinary course of business |
Codes
A)
A\[\to \]3, B\[\to \]2, C\[\to \]1 done
clear
B)
A\[\to \]3, B\[\to \]1, C\[\to \]2 done
clear
C)
A\[\to \]2, B\[\to \]3, C\[\to \]1 done
clear
D)
A\[\to \]2, B\[\to \]1, C\[\to \]3 done
clear
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question_answer85)
Match the following
List I | List II |
A. | Final accounts are prepared after preparation of | 1. | Land |
B. | Trading account and profit and loss are
statements. | 2. | Trial Balance |
C. |
is a tangible fixed assets | 3. | Balance Sheet |
D. | Suspense account appearing in trial balance is shown in | 4. | Periodic |
Codes
A)
A\[\to \]2, B\[\to \]4, C\[\to \]1, D\[\to \]3 done
clear
B)
A\[\to \]1, B\[\to \]2, C\[\to \]3, D\[\to \]3 done
clear
C)
A\[\to \]4, B\[\to \]3, C\[\to \]1, D\[\to \]3 done
clear
D)
A\[\to \]1, B\[\to \]1, C\[\to \]2, D\[\to \]3 done
clear
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question_answer86)
| (`) |
Opening stock | 5000 |
Purchase | 15000 |
Direct expenses | 2000 |
Closing stock | 2500 |
A)
` 20000 done
clear
B)
` 19500 done
clear
C)
` 21500 done
clear
D)
` 22000 done
clear
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question_answer87)
| (`) |
Opening stock | 15000 |
Purchase | 60000 |
Wages | 46000 |
Fuel | 15000 |
Sale | 145000 |
The balance in books of X, a sole proprietor were Closing Stock ` 26,000 whose net realisable value was ` 28,000. Find the gross profit.
A)
` 35,000 done
clear
B)
` 42,500 done
clear
C)
` 54,500 done
clear
D)
` 57,000 done
clear
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question_answer88)
If closing stock appears in the trial balance then it appears in
A)
Trading account done
clear
B)
Profit and loss account done
clear
C)
Balance sheet done
clear
D)
Profit and loss appropriation done
clear
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question_answer89)
Sales =.........+ Gross Profit
A)
Purchase done
clear
B)
Opening stock done
clear
C)
Cost of goods sold done
clear
D)
None of the above done
clear
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question_answer90)
A person started a business with capital of ` 50000 and he takes loan from his relative ` 5000. Profit for the year is ` 20000 and drawings ` 4000. What will be the amount of closing capital?
A)
` 60000 done
clear
B)
` 51000 done
clear
C)
` 56000 done
clear
D)
` 66000 done
clear
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question_answer91)
Cost of goods sold = ` 2000000, Gross Profit = 20% on sales. Calculate the amount of Sales.
A)
` 1825000 done
clear
B)
` 2500000 done
clear
C)
` 2400000 done
clear
D)
` 3000000 done
clear
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question_answer92)
Calculate the value of closing stock from the following
Particular | Amount (`) |
Opening stock | 60000 |
Purchase | 90000 |
Sales | 120000 |
Gross Profit on Cost | 33 1/3% |
Due to fire stock costing ` 25000 destroyed and insurance claim was accepted for ` 8000.
A)
` 40000 done
clear
B)
` 35000 done
clear
C)
` 55000 done
clear
D)
` 60000 done
clear
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