Payment of expenses will ______ the assets

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. Payment of rent expenses is recorded on which side of cash book?

   A. Receipts
   B. Payments
   C. Income
   D. Expense

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

   A. Depreciation
   B. Physical deterioration of the asset
   C. Decrease in market value of the asset
   D. Valuation of an asset at a point of time

4. 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

5. he term 2/10-n/30 implies that ______ % discount will be given if the payment is made within days or full amount is receivable within 30 days?

   A. 2,10
   B. 10,2
   C. 10,30
   D. 3,15

6. Capital expenses are shown in___________?

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

7. Which of the following is a revenue expenses?

   A. Raw material consumed
   B. Plant purchased
   C. Long term loan raised from bank
   D. Share Capital

8. The adjustment to be made for prepaid expenses is____________?

   A. Add prepaid expenses to respective expenses and show it as an asset
   B. Deduct prepaid expenses from respective expenses and show it as an asset
   C. Add prepaid expenses to respective expenses and show it as a liability
   D. Deduct prepaid expenses from respective expenses and show it as a liability

9. Prepaid expenses are valued on the Balance Sheet at

   A. Replacement cost
   B. Current cost
   C. Cost to acquire less accumulated amortization
   D. Cost less expired portion

10. The revenues and expenses of a company are displayed in which statement?

    A. Balance Sheet
    B. Cash Flow Statement
    C. Income Statement
    D. None of the above

    Submitted by: Aqeel Ahmed