Expenses are also known as:

• A) Cost incurred on asset acquired
• B) Prepaid expense
• C) Cost incurred during production
• D) Expired portion of cost

A minor repair to a photocopy machine was paid in cash. Correct entry was made to cash account but no entry was made to other account. What will be the debit effect of journal entry to rectify this error, if there is suspense account in trial balance?

• A) Cash account
• B) Suspense account
• C) Photocopy machine account
• D) Photocopy machine repair account

Unconsumed shipping supplies are considered as:

• A) Current asset
• B) Admin expense
• C) Selling expense
• D) Financial expense

Unfinished goods are called:

• A) Raw material
• B) Stock in trade
• C) None of the given options
• D) Work in process

Service fee received is a ________________.

• A) Capital Receipt
• B) Revenue Receipt
• C) Revenue Expenditure
• D) Capital Expenditure

Office supplies consumed is considered as:

• A) Financial expense
• B) Selling expense
• C) Admin expense
• D) Cost of sales

Purchases Rs. 500, Carriage outward Rs. 50, Gross Sales Rs. 700 and Gross Profit Rs. 100, Net Purchases =?

• A) Rs. 550
• B) Rs. 500
• C) Rs. 650
• D) Rs. 600

Purchases Rs. 500, Returns inwards Rs. 50, Gross Sales Rs. 700 and Gross Profit Rs. 100, Net Purchases =?

• A) Rs. 500
• B) Rs. 450
• C) Rs. 550
• D) Rs. 650

If the debit side of trial balance is heavier than the credit side, suspense account will be written on ________________.

• A) Credit side
• B) Debit side
• C) None of the given options
• D) Both debit and credit side

Drawings account is a/an __________.

• A) Expense item
• B) Contra item
• C) Assets item
• D) Liability item

Under IAS 2, Goods available for sale purpose in the ordinary course of business is known as:

• A) Expenses
• B) Equity
• C) Other payable
• D) Assets

Purchases Rs. 500, Carriage inward Rs. 50, Gross Sales Rs. 700 and Gross Profit Rs. 100, Net Purchases =?

• A) Rs. 550
• B) Rs. 600
• C) Rs. 650
• D) Rs. 500

Capital introduced by the owner is a _________.

• A) Capital Expenditure
• B) Revenue Expenditure
• C) Revenue Receipt
• D) Capital Receipt

Which of the following is an error of original entry?

• A) A payment to a debtor Mr. A is recorded in the account of another debtor Mr. B
• B) Bank charges being deducted by the bank without our knowledge
• C) Purchase of vehicle is recorded in repairs account
• D) A receipt of Rs. 50,000 from a debtor is recorded as Rs. 5,000 in his account

Which of the following should be credited on sale of completed goods on credit basis in manufacturing concern?

• A) Creditors account
• B) Cash account
• C) Sales account
• D) Debtors account

Which of the following should be considered as ready for sales in manufacturing concern?

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

Which of the following should be debited on purchase of raw material on cash basis in manufacturing concern?

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

Bank charges of RS. 1,000 have been deducted by the bank without our knowledge. What will be its effect on net profit?

• A) Understated by Rs. 1,000
• B) Understated by Rs. 2,000
• C) Overstated by Rs. 1,000
• D) No effect

Carriage inward should be the part of:

• A) Selling expense
• B) Direct cost
• C) Indirect cost
• D) Admin expense

Under perpetual system of recording inventory, purchase of inventory is recognized as _______________.

• A) Income
• B) Admin Expense
• C) Asset
• D) Selling Expense