Which of the following is the effect on net income if a business decreases its provision for bad debts?
Which of the following is the effect on net income if a business decreases its provision for bad debts?
The concept of 'separate entity' is applicable to which of the following types of businesses?
The concept of 'separate entity' is applicable to which of the following types of businesses?
Which of the following financial statements shows the financial position of a business at a specific date?
Which of the following financial statements shows the financial position of a business at a specific date?
The allocation of owner's private expenses to his/her business violates which of the following?
The allocation of owner's private expenses to his/her business violates which of the following?
Under which depreciation method, the amount of depreciation expenses remains same throughtout the life of the asset?
Under which depreciation method, the amount of depreciation expenses remains same throughtout the life of the asset?
What does 'aged debtors analysis' signify?
What does 'aged debtors analysis' signify?
Debit balance = Credit balance in a trial balance indicates that
Debit balance = Credit balance in a trial balance indicates that
The going concern concept assumes that
The going concern concept assumes that
Which of the following account with normal balance is shown at the debit side of a trial balance?
Which of the following account with normal balance is shown at the debit side of a trial balance?
An entry which is made on both sides of a cash book is called
An entry which is made on both sides of a cash book is called
How trial balance shows the accumulated depreciation?
How trial balance shows the accumulated depreciation?
Under which method of depreciation, the amount of depreciation expenses remains constant throughout the life of the asset?
Under which method of depreciation, the amount of depreciation expenses remains constant throughout the life of the asset?
The value of inventories or stock is figured out at the lower of cost and
The value of inventories or stock is figured out at the lower of cost and
_______ is the common base for preparing a trial balance
_______ is the common base for preparing a trial balance
Drawings by owner of business are generally recorded on which of the following side of a cash book?
Drawings by owner of business are generally recorded on which of the following side of a cash book?
A current asset that is convertible to cash within 3 months can be referred to as
A current asset that is convertible to cash within 3 months can be referred to as
Purchase of office equipment for cash will be recorded on which side of a cash book?
Purchase of office equipment for cash will be recorded on which side of a cash book?
In income statement, gross profit is always equal to
In income statement, gross profit is always equal to
An increase in the value of fixed asset is referred to as:
An increase in the value of fixed asset is referred to as:
Net profit is computed in which of the following?
Net profit is computed in which of the following?
Exercising a degree of caution in the case of judgements needed under the condition of uncertainity is the assumption of which of the following accounting concepts?
Exercising a degree of caution in the case of judgements needed under the condition of uncertainity is the assumption of which of the following accounting concepts?
Which one of the following concepts states that the publication or presentation of financial statements should not be delayed?
Which one of the following concepts states that the publication or presentation of financial statements should not be delayed?
Office equipment is a ______ asset for a computer manufacturer and the same office equipment is a ____ asset for a company that deals in these equipments
Office equipment is a ______ asset for a computer manufacturer and the same office equipment is a ____ asset for a company that deals in these equipments
Unpresented cheques are also referred to as
Unpresented cheques are also referred to as
Which of the following is the most common cause of bad debt?
Which of the following is the most common cause of bad debt?
Petty cash fund is supposed to be replenished
Petty cash fund is supposed to be replenished
American companies prepare their financial statement in Dollars whereas Japanese companies produce financial statement in Yen. This is an example of:
American companies prepare their financial statement in Dollars whereas Japanese companies produce financial statement in Yen. This is an example of:
Which of the following is time spann into which the total life of a business is divided for the purpose of preparing financial statements?
Which of the following is time spann into which the total life of a business is divided for the purpose of preparing financial statements?
Which of the following is the normal balance of an accumulated depreciation account?
Which of the following is the normal balance of an accumulated depreciation account?
A credit balance in cash book indicates
A credit balance in cash book indicates
A cheque returned by bank marked "NSF" means that
A cheque returned by bank marked "NSF" means that
Which counting concept dictates the inclusion of 'provision for doubtful debts' in the financial statements?
Which counting concept dictates the inclusion of 'provision for doubtful debts' in the financial statements?
A cash book with cash, bank and discount column is commonly referrred to as
A cash book with cash, bank and discount column is commonly referrred to as
Cash book records
Cash book records
Which of the following is/are kind of depreciation expenses?
Which of the following is/are kind of depreciation expenses?
Which of the following is not regarded as the fundamental concept that is identified by IAS-1?
Which of the following is not regarded as the fundamental concept that is identified by IAS-1?
Payment of rent expenses is recorded on which side of cash book?
Payment of rent expenses is recorded on which side of cash book?
The most common imprest system is the ______ system
The most common imprest system is the ______ system
Introduction of capital by owner of business is recorded on which side of a cash book?
Introduction of capital by owner of business is recorded on which side of a cash book?
Using 'lower of cost and net realisable value' for the purpose of inventory valuation is the implementation of which of the following concepts?
Using 'lower of cost and net realisable value' for the purpose of inventory valuation is the implementation of which of the following concepts?
All of the following are the methods of inventory costing except
All of the following are the methods of inventory costing except
In the calculation of depreciation, all of the following items are actually estimates except:
In the calculation of depreciation, all of the following items are actually estimates except:
Postdated cheques are considered as
Postdated cheques are considered as
Discount received is recorded on which of the following side of a cash book?
Discount received is recorded on which of the following side of a cash book?
A company purchased a vehicle for Rs.6000. It will be used for 5 years and its residual value is expected to be Rs.1000. What is the annual amount of depreciation using straight line method of depreciation?
A company purchased a vehicle for Rs.6000. It will be used for 5 years and its residual value is expected to be Rs.1000. What is the annual amount of depreciation using straight line method of depreciation?
Cash book is prepared by
Cash book is prepared by
Which of the following is true about a trial balance?
Which of the following is true about a trial balance?
The real accounts are accounts of Assets, Liabilities and
The real accounts are accounts of Assets, Liabilities and
A cash deposit made by business appears on the bank statement as ____ balance
A cash deposit made by business appears on the bank statement as ____ balance
Land on lease should be shown in Blance sheet contrary to the fact that the company does not own that piece of land is the implementation of which accounting concept?
Land on lease should be shown in Blance sheet contrary to the fact that the company does not own that piece of land is the implementation of which accounting concept?
An overstatement in the value of closing stock overstates all of the following except
An overstatement in the value of closing stock overstates all of the following except
Which of the following account with normal balance is shown at the credit side of a trial balance?
Which of the following account with normal balance is shown at the credit side of a trial balance?
Prepaid expenses are considered as
Prepaid expenses are considered as
Bank Reconciliation statement is the comparision of a bank statement (sent by bank) with the
Bank Reconciliation statement is the comparision of a bank statement (sent by bank) with the
Which of the following financial reports shows the profitability of a business?
Which of the following financial reports shows the profitability of a business?
Which of the following is a double entry for deprecation expenses?
Which of the following is a double entry for deprecation expenses?
A firm has not recorded the bad debts by mistake. Which of the following is the effect of bad debt ommission?
A firm has not recorded the bad debts by mistake. Which of the following is the effect of bad debt ommission?
The purchase price of a software that will be used for more than 12 months should be regarded as
The purchase price of a software that will be used for more than 12 months should be regarded as
Cash book with cash and discount column is mostly referred to as
Cash book with cash and discount column is mostly referred to as
The closing balance of petty cash book is considered as
The closing balance of petty cash book is considered as
An alternative term used for accumulated depreciation expenses?
An alternative term used for accumulated depreciation expenses?
Information about an item is _______ if its ommission or misstatement might influence the financial decision of the users taken on the basis of that information
Information about an item is _______ if its ommission or misstatement might influence the financial decision of the users taken on the basis of that information
Accrued expenses are considered as
Accrued expenses are considered as
The matching concept matches which of the following?
The matching concept matches which of the following?
The term _______ is generally used for the depreciation of natural resources
The term _______ is generally used for the depreciation of natural resources
Which of the following financial statements shows the movement of cash and cash equivalents during an accounting period?
Which of the following financial statements shows the movement of cash and cash equivalents during an accounting period?
XYZ firm has imported a machine from abroad. Which of the following is NOT the element of the machine's cost?
XYZ firm has imported a machine from abroad. Which of the following is NOT the element of the machine's cost?
Favourable balance of cash book implies
Favourable balance of cash book implies
Cash discount is allowed on ______ repayment of debt
Cash discount is allowed on ______ repayment of debt
Provision for cash discount on debtors is a percentage of
Provision for cash discount on debtors is a percentage of
Which of the following foxed assets is not depreciated in the ordinary circumstances?
Which of the following foxed assets is not depreciated in the ordinary circumstances?
Financial statements mainly help in
Financial statements mainly help in
Postage stamps on hand are considered as
Postage stamps on hand are considered as
Depreciable amount + Residual value of a fixed asset = ?
Depreciable amount + Residual value of a fixed asset = ?
If a transaction is completely omitted from the books of accounts, will it effect the agreement of Trial Balance?
If a transaction is completely omitted from the books of accounts, will it effect the agreement of Trial Balance?
Which of the following is a commonly used base to create the provision for doubtful debts?
Which of the following is a commonly used base to create the provision for doubtful debts?
Cost of a fixed asset - Accumulated depreciation expenses of the fixed asset = ?
Cost of a fixed asset - Accumulated depreciation expenses of the fixed asset = ?
Does prudence concept allow a business to build substantially higher reserves or provisions than that are actually required?
Does prudence concept allow a business to build substantially higher reserves or provisions than that are actually required?
Goodwill is classified as which one of the following assets?
Goodwill is classified as which one of the following assets?
Provision for doubtful debts account is a/an
Provision for doubtful debts account is a/an
The revenue recognition principle dictates that all types of incomes should be recorded or recognized when
The revenue recognition principle dictates that all types of incomes should be recorded or recognized when
A cash book that is used to record the small payments of cash is generally referred to as
A cash book that is used to record the small payments of cash is generally referred to as
Which of the following is a biological asset?
Which of the following is a biological asset?
Trial Balance is commonly prepared
Trial Balance is commonly prepared
Revenue earned but not yet received by the business is known as
Revenue earned but not yet received by the business is known as
Purchases + opening stock - closing stock = ?
Purchases + opening stock - closing stock = ?
Bank Reconciliation statement is prepared by
Bank Reconciliation statement is prepared by
Which of the following does not appear in Balance sheet?
Which of the following does not appear in Balance sheet?
Which of the following will affect the agreement of a trial balance?
Which of the following will affect the agreement of a trial balance?
Assets minus liabilities equal to
Assets minus liabilities equal to
Current assets are also known as
Current assets are also known as
_______ are cheques that are issued by the business but not yet presented to bank for payment
_______ are cheques that are issued by the business but not yet presented to bank for payment
What is depreciation?
What is depreciation?
Earned but not yet received income is treated as
Earned but not yet received income is treated as
If debit balances = credit balances, trial balance only shows or checks the _________ and it does not indicate that no errors were made during recording and posting.
If debit balances = credit balances, trial balance only shows or checks the _________ and it does not indicate that no errors were made during recording and posting.
When it is certain that a debt won't be recovered. Which of the following is correct?
When it is certain that a debt won't be recovered. Which of the following is correct?
Depreciation is charged on fixed assets to comply with which of the following accounting principle?
Depreciation is charged on fixed assets to comply with which of the following accounting principle?
In depreciation calculation, the useful life of a fixed asset is:
In depreciation calculation, the useful life of a fixed asset is:
The expenses related to the main operations of a business are referred to as
The expenses related to the main operations of a business are referred to as
A recovery of bad debt
A recovery of bad debt
