Which of the following is TRUE regarding tangible fixed assets?

• A) These are to be used over a period of time (in excess of one year)
• B) There is probability of inflow of economic benefits in future
• C) All of the given options
• D) Their cost can be measured reliably

In case of recovery of bad debts, _____________ is debited.

• A) Bad debts recovered account
• B) Debts account
• C) Bank account
• D) Doubtful debts account

If you are going to calculate the depreciation expense for the year, which of the following information must be gathered?

• A) All of the given information
• B) Deprecation method
• C) Depreciation rate
• D) Deprecation basis (time proportionate or full year basis)

True and fair performance of any business entity is measurable under:

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

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) Fixed asset account
• C) Bank account
• D) Debtor account

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

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

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

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

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

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

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

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

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 year using straight line method is ____________.

• A) Rs. 100,000
• B) Rs. 10,800
• C) Rs. 10,000
• D) Rs. 800

Control accounts are maintained for all of the following EXCEPT:

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

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

Income received during the period should be mentioned in:

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

Control accounts are usually maintained by:

• A) Non-profit businesses
• B) Sole proprietors
• C) Large organizations
• D) Partnerships

_______________________ is posted in credit side of debtors account.

• A) Credit purchases
• B) Cash purchases
• C) Trade discount
• D) Receipts from debtors

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

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

________________ is charged to profit and loss account.

• A) Drawings
• B) Bad debts account
• C) long term loan
• D) Capital

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

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

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

_______________ is posted in credit side of debtors account.

• A) Cash sales
• B) Total sales
• C) Return inwards
• D) Return outwards