Obligation of the Business are known as___________?

Related Mcqs:

1. The portion of the acquisition cost of the asset yet to be allocated is known as___________?

   A. Written down value
   B. Accumulated value
   C. Salvage value
   D. Residual Value

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. Outstanding salaries is shown as___________?

   A. An Asset in the Balance Sheet
   B. A Liability
   C. By adjusting it in the P & L A/c
   D. Both B. and C. above

4. 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

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

   A. Capital
   B. Business
   C. Drawings
   D. All of them

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

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

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

   A. Capital
   B. Loan
   C. Drawing
   D. None of these

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

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

9. For the business, capital is ____________?

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

10. 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