An income statement in which each item expressed as percentage of Sale?

Related Mcqs:

1. A sale of Rs. 50.000 to A was entered as a sale to B. This is an example of____________?

   A. Error of omission
   B. Error of commission
   C. Compensating error
   D. Error of principle

2. An account records the ___________ in the balance of an item?

   A. Increase
   B. Decrease
   C. Increase or decrease
   D. Appreciation

3. Which of the following is an item of capital expenditure?

   A. Research and development costs during the year
   B. Interest on borrowed fund utilized for acquisition of Office Furniture
   C. Installation charges paid in conjunction with the purchase of Office Equipment
   D. Monthly rent of a machinery used in the business

4. SALE of old furniture” will be recorded in which of the following specialised journals?

   A. Purchase journal
   B. Sales journal
   C. General journal
   D. Cash receipt journal

5. Any gain on the sale of non-current assets should be _________ from the net profit and the loss must be _________to the net profit in determining fund from operation?

   A. Added, Reduced
   B. Added, Added
   C. Deducted, Added
   D. Deducted, Deducted

6. A second hand car is purchased for 2,00,000 and sold at 1,40,000 after two years. If depreciation is charged @ 10% on SLM method, find the profit or loss on sale of the car?

   A. 20,000 Loss
   B. 20,000 Profit
   C. 10,000 Loss
   D. 10,000 Profit

7. A second hand car is purchased for 2,00,000 and sold at 1,40,000 after two years. If depreciation is charged @ 10% on written down value method, find the profit or loss on sale of the Second hand car?

   A. Loss of 20,000
   B. Loss of 22,000
   C. Loss of 11,000
   D. Profit of 11,000

8. Profit on sale of old plant is:___________?

   A. In Trading A/c
   B. In Profit and Loss Appropriation A/c
   C. Profit and Loss A/c
   D. Being a non operating item ignored

9. Bank reconciliation statement is the comparison of a bank statement (sent by bank) with the _________ (prepared by business).

   A. Cash receipt journal
   B. Cash payment journal
   C. Cash book
   D. Financial statements

10. The beginnings inventory of the current year is overstated by 5,000 and closing inventory is overstated by 12,000. These errors will cause the net income for the current year by

    A. 17,000 (overstated.
    B. 12,000 (understated.
    C. 7,000 (overstated.
    D. 7,000 (understated.