A)
Capital receipt
B)
Revenue receipt
C)
Personal receipt
D)
Current liability
Answer & Solution
Answer: Option
A
12
Which of the following is not a capital reserve?
A)
Premium on issue of shares
B)
Profits prior to incorporation
C)
Dividend equalisation reserve
D)
Reserve created out of profit on the sale of fixed assets
Answer & Solution
Answer: Option
C
13
Royalty payable by lessee is transferred to
A)
Royalty A/c
B)
Land Lord A/c
C)
Profit & Loss A/c
D)
Short workings A/c
Answer & Solution
Answer: Option
C
14
Partnership has been defined by partnership act of:
A)
Sec. 4, 1932
B)
Sec. 8, 1935
C)
Sec. 10, 1942
D)
Sec. 18, 1881
Answer & Solution
Answer: Option
A
15
Rs. 10000 machinery purchased, wrongly debited purchases account. This is
A)
Clerical error
B)
Error of principle
C)
Compensating error
D)
None of these
Answer & Solution
Answer: Option
B
16
Accounting concepts are based on
A)
Certain assumptions
B)
Certain facts and figures
C)
Certain accounting records
D)
Government guidelines
Answer & Solution
Answer: Option
A
17
Which of the following items will not appear in the Balance Sheet of a club:
A)
Subscriptions received for the next year
B)
Subscriptions received for the current year
C)
Subscriptions not received for the current year
D)
Outstanding salary
Answer & Solution
Answer: Option
B
18
The Nature of advance tax payment is:
A)
Assets
B)
Liability
C)
Prepaid expense
D)
Revenue expenditure
Answer & Solution
Answer: Option
A
19
In accounting, the profit prior to incorporation is treated as
A)
Revenue reserve
B)
Secret reserve
C)
Capital reserve
D)
General reserve
Answer & Solution
Answer: Option
C
20
If opening stock is Rs. 10,000, purchases Rs. 30,000 direct expenses Rs. 4,000 and closing stock Rs. 5,000, the cost of goods sold would be:
A)
Rs. 39,000
B)
Rs. 40,000
C)
Rs. 41,000
D)
Rs. 44,000
Answer & Solution
Answer: Option
A
