Capital of a business decreases if there is an increase in___________?

Related Mcqs:

1. Capital expenses are shown in___________?

   A. Balance Sheet
   B. Profit and Loss A/c
   C. Trading A/c
   D. None of these

2. Which of the following accounts will be debited if the business’s owner withdraws cash from business for his personal use?

   A. Drawings
   B. Cash
   C. Business
   D. Stock

3. For the business, capital is ____________?

   A. Expense
   B. Liability
   C. financial assets
   D. All of them

4. If the business’s owner withdraws cash for his/her personal use what will be the effect on capital?

   A. Increase in capital
   B. Remain the same
   C. Decrease in capital
   D. No effect on capital

5. Introduction capital by owner of business is recorded on which side of a cash book?

   A. Receipts
   B. Payments
   C. Incomes
   D. Expenditures

6. Revenue receipts are shown in___________?

   A. Balance Sheet
   B. Profit and Loss appropriation A/c
   C. Manufacturing A/c
   D. Trading and Profit and Loss A/c

7. Tax deducted at source A/c appears in___________?

   A. Assets side
   B. Liability side
   C. Profit & Loss A/c
   D. Debited to Capital A/c

8. A foreign bill of exchange is generally drawn up in___________?

   A. Triplicate
   B. Duplicate
   C. Single
   D. Quadruplicate

9. Which of the following accounts appear(s) in the Balance Sheet of a business?

   i. Stock at the end of the financial year
   ii. Stock at the beginning of the financial year
   iii. Drawings
   iv. Prepaid Rent
   v. Interest received but not yet earned

   A. Only (i) above
   B. Only (iii) above
   C. Both (i)and (iii) above
   D. (i), (iii), (iv) and (v) above

10. Which of the following are current assets of a business?

    i. Income received in advance
    ii. Stock
    iii. Debtors
    iv. Pre-paid expenses
    v. Accrued income

    A. Both (i) and (iv) above
    B. Both (ii) and (iii) above
    C. (i),(ii) and (iii) above
    D. (ii),(iii),(iv) and (v) above