The amount invested by the proprietor to start the business is called:

Related Mcqs:

1. Cash brought by the owner to start business is called__________?

   A. Capital
   B. Loan
   C. Drawing
   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. Which of the following statements is true with regard to written down value method of depreciation?
   i. The rate at which the asset is written off reduces year after year
   ii. The amount of depreciation provided reduces from year to year
   iii. The rate of depreciation as well as the amount of depreciation reduce year after year
   iv. The value of the asset gets reduced to zero over a period of time

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

4. In support of business transaction, any written evidence is called ___________?

   A. Discount
   B. Voucher
   C. Allowance
   D. Price

5. A chart of accounts generally start with which of the following types of accounts?

   A. Assets accounts
   B. liability accounts
   C. Cash accounts
   D. Revenue accounts

6. Obligation of the Business are known as___________?

   A. Liabilities
   B. Revenues
   C. Expenses
   D. Assets

7. When goods, in which business deals are sold, it is called___________?

   A. Purchases
   B. Return inward
   C. Sales
   D. Return outwards

8. For the business, capital is ____________?

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

9. Which of the following will be debited if a business purchases goods on credit?

   A. Cash
   B. Debtor
   C. Creditor
   D. Purchases

10. The total cost incurred in the operation of a business undertaking other than the cost of manufacturing and production is known as________?

    A. Direct cost
    B. Variable cost
    C. Commercial cost
    D. Conversion cost