The accounting process of gradually converting the unexpired cost of fixed assets into expenses over a series of accounting periods is_________?

Related Mcqs:

1. Expenses of the following nature are treated as a Revenue expenses except__________?

   A. Expenses for day to day running of the business
   B. Putting the new asset in working condition
   C. Depreciation
   D. Purchase of raw material

2. If unexpired insurance appears in the Trial Balance, it should be:

   A. Credited to the Profit & Loss Account
   B. Debited to the Profit & Loss Account
   C. Shown on the liabilities side of the Balance Sheet
   D. Shown on the assets side of the Balance Sheet

3. If Cash=$1000 inventories=$4000 Debtors=$5000 fixed assets=? Capital+Liabilities=$15000 What is the Amount of total assets?

   A. $5000
   B. $10,000
   C. $15,000
   D. $20,000

4. Payment of expenses will ______ the assets

   A. Increase
   B. Reduce
   C. apportion
   D. Overstate

5. _________is the cost of converting raw material into finished products?

   A. Prime cost
   B. Explicit cost
   C. Job order cost
   D. Conversion cost

   Submitted by: Maneesh Kumar

6. Which of the following can be considered as the most important phase of accounting cycle and it is the primarily objective of financial accounting?

   A. Identifying transactions
   B. Preparing “T Accounts”
   C. Preparing financial statements
   D. Preparing trial balances

7. Average Accounting Return is a measure of accounting profit relative to:

   A. Book value
   B. Intrinsic value
   C. Cost
   D. Market value

8. Which of the following items should not be capitalized relating to fixed assets?

   A. Interest payable on loans or deferred credits taken for the acquisition or construction of fixed assets before they are ready for use
   B. Stand by equipment and servicing equipment
   C. Expenditure incurred on test runs and experimental production
   D. Administration and general expenses

9. A Ltd. Has sales of 2,200, total fixed cost of 570, variable cost of 1,540, raw material consumed of ` 1,100, number of units sold 22,000. What shall be the BEP 9 in units) if raw material price is reduced by 2%?

   A. 18,387
   B. 18,560
   C. 18,750
   D. 19,000

10. For which step of accounting process the accountants of business entity prepare financial statements?

    A. Identification of economic event
    B. Communication of financial information
    C. Recording financial information
    D. Making decisions about business