GENERAL ACCOUNTING PRINCIPLES (GENERAL STUDIES) Part-2

Total Questions: 30

1. Computer of a firm should be classified as

  1. (a) Current assets
  2. (b) Fictitious
  3. (c) Fixed assets
  4. (d) Liquid assets
Correct Answer: (c) Fixed assets
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2. Which is not an example of Capital expenditure

  1. (b) Depreciation on fixed assets
  2. (a) Initial expenditure for acquiring patent right.
  3. (c) Preliminary expenses for floating a company.
  4. (d) Expenses for obtaining a license.
Correct Answer: (b) Depreciation on fixed assets
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3. Revenue Expenditure means

  1. (a) The amount which is incurred in acquiring or improving the value of fixed assets
  2. (b) None of these
  3. (c) The expenditure which is incurred for the day to day running of the business
  4. (d) Both
Correct Answer: (c) The expenditure which is incurred for the day to day running of the business
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4. The expenditure whose amount is heavy and benefit of the likely to be derived over a number of years called _______.

  1. (a) Deferred capital expenditure
  2. (b) Both
  3. (c) None
  4. (d) Deferred revenue expenditure
Correct Answer: (d) Deferred revenue expenditure
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5. Capital receipts are shown in _____

  1. (a) Profit and Loss account
  2. (b) Trading account
  3. (c) None of these
  4. (d) Balance Sheet
Correct Answer: (d) Balance Sheet
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6. All direct expenses are ____ to Trading account and all indirect expenses are ____ to Profit and Loss account.

  1. (a) Debited, Debited
  2. (b) Debited, Credited
  3. (c) Credited , Debited
  4. (d) Credited , Credited
Correct Answer: (a) Debited, Debited
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7. Which of the following will not be included in trading account

  1. (a) Factory expenses
  2. (b) Postage and telegram expense
  3. (c) Manufacturing Wages
  4. (d) Carriage on purchase
Correct Answer: (b) Postage and telegram expense
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8. Types of account shown in the balance sheet are

  1. (a) Nominal and personal
  2. (b) Nominal and real
  3. (c) Real and personal
  4. (d) None of these
Correct Answer: (c) Real and personal
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9. Accrued income is

  1. (a) Liability
  2. (b) Asset
  3. (c) Revenue
  4. (d) Expense
Correct Answer: (b) Asset
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10. When the concept of ratio is defined in respected to the items shown in the financial statements, it is termed as

  1. (a) Accounting ratio
  2. (b) Financial ratio
  3. (c) Costing ratio
  4. (d) None of the above
Correct Answer: (a) Accounting ratio
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