Revenue is generally recognized as being earned at that point of time when?

Related Mcqs:

1. Income earned but not received is called ____________?

   A. Fictitious assets
   B. Quick asset
   C. Real asset
   D. Outstanding asset

2. For the past 3 years, DK Ltd. has failed to accrue unpaid wages earned by workers during the last week of the year. The amounts omitted, which were considered material, were as follows:
   March 31,2010 – ` 56,000
   March 31, 2011 – ` 51,000
   March 31, 2012 – ` 64,000
   The entry on March 31, 2012 to rectify these omissions would include a

   A. Credit to wage expense for ` 64,000
   B. Debit to wage expense for ` 64,000
   C. Debit to wage expense for ` 51,000
   D. Debit to wage expense for ` 13,000

3. Revenue and expense accounts are referred as______________?

   A. Nominal accounts
   B. Real account
   C. Cash accounts
   D. Banks account

4. Which of the following methods is not a practical way of realizing revenue?

   A. Delivery method
   B. Percentage-of-completion method
   C. Production method
   D. Moving average method

5. Which of the following should not be treated as revenue expenditure?

   A. Interest on loans and debentures
   B. Annual fire insurance premiums on Plant and Equipment
   C. Sales tax paid in connection with the purchase of office equipment
   D. Small expenditures on long- lived assets, such as ` 20 for a paper weight.

6. Which of the following is not a deferred revenue expenditure?

   A. Expenses in connection with issue of equity shares
   B. Preoperative expenses
   C. Heavy advertising expenses to introduce a new product
   D. Legal expenses incurred in defending a suit for breach of contract to supply goods

7. Which one of the following should be considered a revenue expenditure?

   A. 1000 paid for the execution of a new plant
   B. Loss of 10,000 incurred in increasing the sitting accommodation of a hotel
   C. Damage paid on account of breach of a contract to supply certain goods
   D. Repair to machinery purchased, second hand.

8. 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

9. 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

10. During the accounting period, sales revenue is Rs. 25,000 and accounts receivable increases by Rs. 8,000. What will be the amount of cash received from customers for the period?

    A. Rs. 33,000
    B. Rs. 25,000
    C. Rs. 17,000
    D. Rs. 8,000