Practice Test

Q1) If a transaction involves both cash and bank account , it is entered on both sides of the cash book ,one in the cash column and second in the bank column ,though on opposite sides. This is called _____
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Q2) ________is that expenditure which result in acquisition of an asset or which result in an increase in the earning capacity of a business Show Answer

Q3) Expenses whose benefit expires within the year of expenditure and which are incurred to maintain the earning capacity of existing assets are termed as________. Show Answer

Q4) There are certain expenses which may be in the nature of revenue but their benefit may not be consumed in the year in which such expenditure has been incurred,rather the benefit may extend over a number of year are termed as______ Show Answer

Q5) The benefit of capital expenditure lasts for a________of time Show Answer

Q6) Which of the following is/are example of capital expenditure ? Show Answer

Q7) Amount paid for wages,salary,carriage of goods,repairs,rent and interest,etc, are items of_______ Show Answer

Q8) Cost incurred to acquire an asset are_______but costs incurred to keep them in working condition or to defend their ownership are______ Show Answer

Q9) Which of the following is/are not example of capital expenditure Show Answer

Q10) Which of the following is/are not example of capital expenditure Show Answer

Q11) Depreciation on fixed assets is______ Show Answer

Q12) All sums spent up to the point an asset is ready for use should also be treated as_____ Show Answer

Q13) Fees paid to lawyer for drawings a purchase deed of land is_____ Show Answer

Q14) Interest on loans taken to acquire fixed assets only for the period before the asset become operational is______ Show Answer

Q15) Amount paid for wages,salary,carrige of goods,repairs,rent and interest,etc,are items of_______ Show Answer

Q16) Fee paid o lawyer for cheking whether all the papers are in order before land is purchased is_______but if later a suit is filed against the purchaser,the legal costs will be______ Show Answer

Q17) Which of the following is/are deferred revenue expenditure ? Show Answer

Q18) Expenditure incurred for reconditioning to restore the operating efficiency of the used property acquired for the business are_____ Show Answer

Q19) Expenses incurred to maintain the business,cos of store consumed in the course of manufacturing e.g.oli,cotton-waste are___ Show Answer

Q20) Expenditures incurred in normal course of business and whose benefit expires within the year is known as_______while_____is that expenditure which result in acquisition of an asset or which result in an inrease in earning capacity of business. Show Answer

Q21) The main purpose of the incurring capital expenditure is to____of the business.The main purpose of incurring revenue expenditures is to_____of the business. Show Answer

Q22) Capital expenditure normally appears on______ Show Answer

Q23) Revenue expenditure are balanced and is transferred to____ Show Answer

Q24) Deferred revenue expenditure appears in balance sheet at assets side under the heading_____ Show Answer

Q25) Which of the following is/are recurring in nature ? Show Answer

Q26) Which of the following is/are non-recurring in nature ? Show Answer

Q27) The main feature of capital expenditure is that it result in a benefit which will accrue to the business enterprise for a long time say______ Show Answer

Q28) Deferred revenue expenditure also results in a benefit which will accrue in future period but generally for____ Show Answer

Q29) Which of the following is/are not usually capable of being reconverted into cash ? Show Answer

Q30) Heavy loss such as loss due to earthquake is treated as_____in the sense that they are writte off over a period of 3 to 5 years. Show Answer

Q31) which of the following are of capital nature ? Show Answer

Q32) Select the false statement. Show Answer

Q33) Amount received from sale of capital asset per contribution made by proprietor towards the capital of the business are knows as_____ Show Answer

Q34) ______is the outcome of a firm's activity in the accounting period,part of its rewards for offering goods or services to the public Show Answer

Q35) Which of the following is/are revenue receipt ? Show Answer

Q36) Which of the following is/are capital receipt ? Show Answer

Q37) Which of the following is/are not capital receipt ? Show Answer

Q38) Which of the following is/are not revenue receipt ? Show Answer

Q39) _______and______have no bearing on the profit or loss for the accounting period. Show Answer

Q40) Amount realized by the sale of fixed assets or by issue of share or debentures is a _____while amount realized by sale of goods or rendering services is always______ Show Answer

Q41) Payment in to the business by proprietor is_____receipt Show Answer

Q42) A receipt in substitution of a source of income is a_______ Show Answer

Q43) A receipt in substitution of an income is a______ Show Answer

Q44) Amount received for surrender of certain rights under an agreement is a_______when a capital asset is being given up in the form of these rights. Show Answer

Q45) Amount received as compensation under an agreement for the loss of future profits is a_____ Show Answer

Q46) If an income is received ina lumo sum it is a________but if lumpsum payment is received in instalments ,it is a_______ Show Answer

Q47) Amonut realized from the sale of a capital asset or investment is______however amount realized from the sale of an asset kept for sale is______ Show Answer

Q48) _______are not available for distribution as profits while_____can be utilized for creating reserve fund or for distribution as profits after deducting revenue exp. Show Answer

Q49) _______are earned in the ordinary course of business Show Answer

Q50) _____are those which are earned as a result of selling some fixed assets,or in connection with raising capital for the firm Show Answer

Q51) ______appear in the profit and loss account and are available for distridution as profit,or for creating reserve and funds,or for being used in the business Show Answer

Q52) Capital profits are_____ Show Answer

Q53) Capital losses are shown in the_____ Show Answer

Q54) Discount on issue of debentures is a______ Show Answer

Q55) If capital losses are negligible,they are_______of the year in which they occur. Show Answer

Q56) A contingent asset is a possible asset that arises from_____the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the enterprise. Show Answer

Q57) A contingent asset is a possible asset that arises from past events the existence of which will be confirmed only by the _____ or ______ of one or more uncertain future events not wholly within the control of the enterprise. Show Answer

Q58) A contingent liability is a possible obligation that arises from_______ and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the enterprise.It is a present obligation that arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic benefit will be required to settle the obligation or a reliable estimate of the amount of the obligation can not be determined" Show Answer

Q59) Which of the following expenditures is/are capital expenditure Show Answer

Q60) Which of the following expenditures is/are not capital expenditure Show Answer

Q61) Which of the following expenditure is deferred revenue expenditure ? Show Answer

Q62) Which of the following expenditure is/are not revenue expenditure ? Show Answer

Q63) Which of the following expenditure is/are revenue expenditure ? Show Answer

Q64) Which of the following expenditure is/are revenue expenditure ? Show Answer

Q65) A building purchase for Rs.1,50,000 was subsequently sold for Rs.1,75,000,difference Rs.25,000 will be______ Show Answer

Q66) When a company issues its shares of the face value Rs.100 for Rs.105 each, it is said that shares have been issued at a premium,which is_____ Show Answer

Q67) Which of the following expenditure is/are capital expenditure ? Show Answer

Q68) Which of the following expenditure is/are capital expenditure ? Show Answer

Q69) Which of the following expenditure is/are revenue expenditure ? Show Answer

Q70) ______arise as a result of some act or omission on the part of the person responsible for the maintenance of books of account
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