Final balance of depreciation expense a/c is closed into the ___________as an expense.

• A) Cash flow statement
• B) Trial balance
• C) Balance sheet
• D) Income statement

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

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

Rent receivable account should be debited due to:

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

_________________ is posted in credit side of debtors account.

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

In case of discount allowed to debtors, _____________ is debited.

• A) Trade discount account
• B) Discount allowed account
• C) Receivable account
• D) Doubtful debts account

All of the following items appear on debit side of Trade payable control account EXCEPT:

• A) Purchases return
• B) Credit purchases
• C) Discount received
• D) Cash paid to creditors

_______________________ is posted in debit side of debtors account.

• A) Credit sales and opening balance of debtors
• B) Cash and credit purchase
• C) Opening and closing balance of creditors
• D) Cash sales and credit sales

____________________ is posted in credit side of debtors account.

• A) Credit sales
• B) None of the given options
• C) balance b/f of debtors
• D) Cash sales

If cost of a plant is Rs. 120,000, total estimated hours are 15,000 and residual value is Rs. 20,000. Then depreciation rate per hour is ____________.

• A) Rs. 8 per hour
• B) Rs. 6 per hour
• C) Rs. 1.33 per hour
• D) Rs. 6.67 per hour

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) Fair value
• C) Market value
• D) Carrying value

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

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

In case of writing off debtors as bad debt, ____________ is debited.

• A) Provision account
• B) Payable account
• C) Receivable account
• D) Bad debts account

If cost of equipment is Rs. 108,000, useful life is 10 years and its residual value is Rs. 8,000. Then Deprecation for the 3rd year using straight line method is ____________.

• A) Rs. 9,800
• B) Rs. 8,820
• C) Rs. 8,000
• D) Rs. 10,000

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

• A) Payable account
• B) Bad debts account
• C) Provision account
• D) Receivable account

_____________________is posted in credit side of debtors account.

• A) Receipts from debtors
• B) All of the given options
• C) Sales return account
• D) Discount allowed account

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

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

Mostly, control accounts are maintained for:

• A) Trade payables
• B) Inventory
• C) All of the given options
• D) Trade receivables

All of the following items may appear in Trade receivable control account EXCEPT:

• A) Cash sales
• B) Discount allowed
• C) Bad debts
• D) Cash received from debtors

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

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

Property, Plant and Equipment include:

• A) All of the given options
• B) Assets to be used in selling of goods or services
• C) Assets held for production of goods or services
• D) Assets used for administrative purposes