Accounting Mcqs

Page No. 13

Expenditure incurred annually on renewal of patent is a


aRevenue expenditure

✓


bCapital expenditure

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cFinancial expenditure

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dOperating expenditure

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View Answer Revenue expenditure

Stock of a Trading concern consists of


aRaw material

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bWork in progress

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cMerchandise inventory

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dAll of the above

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View Answer Merchandise inventory

General office expenses are charged to which of the following head?


aAdministrative expenses

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bMarketing expenses

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cSelling expenses

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dFinancial expenses

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Which of the following are the owners of a company?


aProprietors

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bPartners

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cShareholders

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dManagers

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View Answer Shareholders

The persons who sign Articles and Memorandum of the company and contribute in the initial share capital of the company are called


aSubscribers

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bShareholders

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cManagers

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dDirectors

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View Answer Subscribers

Which one of the following can offer its share to public at large?


aPrivate limited company

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bListed company

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cPartnership firm

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dTrust

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View Answer Listed company

Which one of the following statement is CORRECT about long term liabilities?


aThese are due within one year

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bThese consist of all debts, payable after 12 months

✓


cIn working capital, these are deducted from current assets

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dAll of the above

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Which one of the following is NOT true about revenue expenditure?


aThese are the running expenses of the business

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bThey improve the financial position of the business

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cThey reduce the profit of the concern

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dThey do not appear in the balance sheet

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The maximum amount with which a company is registered is called


aAuthorized capital

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bIssued capital

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cPaid up capital

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dCalled up capital

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View Answer Authorized capital

Authorized share capital is also known as


aRegistered capital

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bIssued capital

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cPaid up capital

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dCalled up capital

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View Answer Registered capital

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