Income receivable at the end of the period is treated as:

• A) Liability
• B) Assets
• C) Drawings
• D) Expense

If cost of a plant is Rs. 90,000, total estimated output is 30,000 units and its residual value is Rs. 10,000. Then Deprecation rate per unit is ____________.

• A) Rs. 1.11 per unit
• B) Rs. 9 per unit
• C) Rs. 2.67 per unit
• D) Rs. 3 per unit

Which of the following can be attributed as ‘Useful life’ a tangible fixed asset?

• A) Number of production units expected to be obtained from the asset
• B) All of the given options
• C) Number of hours expected to put the asset in production
• D) Period over which the asset is expected to be used

If cost of a plant is Rs. 90,000, total estimated output is 30,000 units and units produced during year 2019 are 7,000. Then calculate deprecation for year 2019 if deprecation rate per unit is Rs. 3.

• A) Rs. 21,000
• B) Rs. 180,000
• C) Rs. 90,000
• D) Rs. 270,000

A receivables ledger control account had a closing balance of Rs.9,000. A dishonored cheque of Rs. 500 had been omitted to record in this control account. What should be the correct balance of receivables control account?

• A) Rs. 10,000 debit
• B) Rs. 9,500 debit
• C) Rs. 8,000 debit
• D) Rs. 8,500 debit

If an asset is exchanged with another asset and commercial substance does not exist, the cost of asset taken through exchange is __________ of asset given up.

• A) Purchase price
• B) Market value
• C) Carrying value
• D) Fair value

A payables ledger control account had a closing balance of Rs.9,000. A credit sales of Rs. 500 had been omitted to record in this control account. What should be the correct balance of payables control account?

• A) Rs. 10,000 credit
• B) Rs. 8,000 credit
• C) Rs. 8,500 credit
• D) Rs. 9,000 credit

In case of creating provision for doubtful debt, _____________ is credited.

• A) Receivable account
• B) Payable account
• C) Doubtful debts account
• D) Provision for doubtful debts account

Which of the following is a Tangible fixed asset?

• A) All of the given options
• B) Factory Workshop
• C) Car held for rent
• D) Outlet where products are displayed

Control accounts are maintained for all of the following EXCEPT:

• A) Inventory
• B) Depreciation
• C) Trade receivables
• D) Trade payables

If a fixed asset is purchased for Rs. 100,000 and payment is made through cheque; then which of the following account will be credited?

• A) Cash account
• B) Bank account
• C) Debtor account
• D) Fixed asset account

Income received but not yet earned till the end of the accounting period is treated in balance sheet as:

• A) Capital
• B) Asset
• C) Drawing
• D) Liability

Expenses paid during the period should be mentioned in:

• A) Payment side of balance sheet
• B) Payment side of cash book
• C) Receipt side of cash book
• D) Expense side of balance sheet

Advance receipt at the end of the period is treated as:

• A) Expenses
• B) Liability
• C) Drawings
• D) Assets

Rent receivable account should be debited due to:

• A) Balance sheet
• B) Closing balance
• C) Opening balance
• D) Cash paid

Expense payable at the end of the period is treated as:

• A) Income
• B) Asset
• C) Liability
• D) Drawings

Prepaid expense at the end of the period is treated as:

• A) Liability
• B) Asset
• C) Income
• D) Drawing

ABC Corporation has recently purchased a new production plant. It will be initially measured at____________.

• A) Cost
• B) Market value
• C) Fair value
• D) Whichever value is available

_________________ is posted in credit side of debtors account.

• A) Credit sales
• B) Balance b/f of debtors
• C) Balance c/f of debtors
• D) Cash sales

___________________ is posted in credit side of debtors account.

• A) Purchases return and discount allowed
• B) Sales return and discount allowed
• C) Cash purchases and credit purchases
• D) Cash sales and credit sales