Which of these types of expenditure would not be treated as a Capital Expenditure??
A. Acquisition of an Asset
B. Extension of an Asset
C. Improvement of the existing Asset
D. Maintenance of the Asset
Category: Accounting Mcqs
Which of the following accounts will be credited if a company purchases building for cash??
A. Capital account
B. Fixed assets account
C. Building account
D. Cash account
Revenue is generally recognized as being earned at that point of time when??
A. sale is effected
B. cash is received
C. production is completed
D. debts are collected
Trial balance is commonly prepared??
A. Frequently during the year
B. At the end of an accounting period
C. At the end of a month
D. At the end of a year
A second hand car is purchased for 2,00,000 and sold at 1,40,000 after two years. If depreciation is charged @ 10% on written down value method, find the profit or loss on sale of the Second hand car??
A. Loss of 20,000
B. Loss of 22,000
C. Loss of 11,000
D. Profit of 11,000
Financial accounting provides financial information to all of the following external users except:?
A. Government agencies
B. investors
C. Creditors
D. Managers
Which of the following is an item of capital expenditure??
A. Research and development costs during the year
B. Interest on borrowed fund utilized for acquisition of Office Furniture
C. Installation charges paid in conjunction with the purchase of Office Equipment
D. Monthly rent of a machinery used in the business
A brief explanation recorded below every entry in general journal is commonly known as__________??
A. Narration
B. Explanation
C. Summary
D. Other information
The person to whom goods are sold on credit is called___________??
A. Buyer
B. Seller
C. Debtor
D. Creditor
Which of the following accounts appear(s) in the Balance Sheet of a business??
i. Stock at the end of the financial year ii. Stock at the beginning of the financial year iii. Drawings iv. Prepaid Rent v. Interest received but not yet earned A. Only (i) above
B. Only (iii) above
C. Both (i)and (iii) above
D. (i), (iii), (iv) and (v) above
