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

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

_________________ is credited for closing the salaries expense for the period.

• A) Salaries income
• B) Accrued Salaries
• C) Salaries expense
• D) Income statement

_________________ is debited for closing the salaries expense for the period.

• A) Accrued Salaries
• B) Salaries income
• C) Salaries expense
• D) Income statement

Property Plant and Equipment include:

• A) All of the given options
• B) Assets used for administrative purposes
• C) Assets which are given on rental to others
• D) Assets held for production of goods or services

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

• A) Creditors account
• B) Debtors account
• C) Trade discount account
• D) Doubtful debts account

Expense account is closed at the end of the accounting period in:

• A) Income statement
• B) General Journal
• C) Income account
• D) Balance sheet

A payables ledger control account had a closing balance of Rs.9,000. A discount received 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. 9,500 credit
• C) Rs. 8,000 credit
• D) Rs. 8,500 credit

Debtors which might become bad in future is known as____________.

• A) Long term debts
• B) Doubtful debt
• C) Bad debt
• D) Sundry debtors

Unearned income at the end of the period is treated as:

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

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

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

Mostly, control accounts are maintained for:

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

ABC Corporation has recently purchased a used production plant. Its purchase price is Rs. 100,000; cost incurred to remove plant from site Rs. 4,000 and installation cost is Rs. 5,000. It will be initially recognized in books at Rs. ___________.

• A) Rs. 105,000
• B) Rs. 100,000
• C) Rs. 109,000
• D) Rs. 104,000

In case of creating the provision for discount on debts, __________________ is credited.

• A) Receivable account
• B) Trade discount account
• C) Provision for discount account
• D) Discount on debts account

Matching principle is applied in:

• A) Both accrual and cash basis
• B) Cash basis
• C) Accrual basis
• D) None of the given options

Which of the following should be debited on sale of completed goods on cash basis in manufacturing concern?

• A) Sales account
• B) Finished goods account
• C) Cash account
• D) Material account

Which one of the following is INCORRECT about closing stock?

• A) It becomes opening stock of next year
• B) It is added into current assets
• C) It reduces the resources of business
• D) It is deducted from material available for use

Income = ?

• A) Expenses – profit
• B) Assets + profit
• C) Profit + expenses
• D) Profit – expenses

Leather to make jackets in manufacturing concern is:

• A) Work in process
• B) Finished goods
• C) Stock in trade
• D) Raw material

Which of the following Organization converts raw material into finished goods?

• A) Service concern
• B) Trading concern
• C) Manufacturing concern
• D) Merchandising concern

Which of the following should be debited on return of raw material to supplier in manufacturing concern?

• A) Debtors account
• B) Purchase account
• C) Voucher payable account
• D) Material account