Income received in advance at the end of the period is treated as:

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

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

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

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

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

While preparing a Creditors Control Account, Debit side shows the items that will cause:

• A) Increase in debtors’ balance
• B) Decrease in creditors’ balance
• C) Increase in creditors’ balance
• D) Both increase and decrease in creditors’ balance

Expenses paid in advance at the end of the period is treated as:

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

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

Which of the following is TRUE regarding tangible fixed assets?

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

_________________ is debited for closing the commission income for the period.

• A) Commission expense
• B) Income statement
• C) Commission income
• D) Accrued commission

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

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

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

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

A creditors’ control account is used to record all the transactions related to:

• A) Credit sales
• B) Cash sales
• C) Cash purchases
• D) Credit purchases

_______________________ is posted in debit side of debtors account.

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

Income received during the period should be mentioned in:

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

_____________ is the systematic allocation of the depreciable amount of an asset over its useful life.

• A) Depreciation
• B) Cost
• C) Fair value
• D) Market value

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

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

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

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

ABC Corporation has recently purchased a new production plant. Its purchase price is Rs. 100,000, import duty Rs. 8,000 and installation cost is Rs. 5,000. It will be initially recognized in books at Rs. ___________.

• A) Rs. 113,000
• B) Rs. 105,000
• C) Rs. 100,000
• D) Rs. 108,000

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

<p>Under one account method, a separate ledger account of particular income is not maintained.</p>

• A) <p><strong>True</strong></p>
• B) <p>False</p>
• C)
• D)

Expenses paid but the benefit is not received till the end of the accounting period is treated in balance sheet as:

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