Accounting Mcqs

Page No. 25

Which of the following is not a transaction?


aGoods are purchased on cash basis for Rs.1000

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bSalaries are paid for the month of May 2010

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cLand is purchased for Rs. 10 lacs

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dAn employee dismissed from the job

✓



If an effect of an error is cancelled by the effect of some other error, it is commonly known as


aError of principle

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bCompensatory errors

✓


cError of omission

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dError of commission

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View Answer Compensatory errors

"Treating a revenue expenditure as a capital expenditure" is an example of


aCompensating error

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bError of principle

✓


cError of omission

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dError of commission

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View Answer Error of principle

The basic consideration(s) in distinction between capital and revenue expenditure is/are


aNature of business

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bEffect on revenue generating capacity of the business

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cPurpose of expenses

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dAll of the above

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View Answer All of the above

Narrations are given at the end of


aFinal accounts

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bTrial Balance

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cEach Ledger account

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dEach journal entry

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View Answer Each journal entry

Interest on drawings is ___ for the business


aLoss

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bExpense

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cGain

✓


dNone of the above

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View Answer Gain

X draws a bill on Y. X endorsed the bill to Z. ____ will be the payee of the bill.


aX

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bY

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cZ

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dNone of the above

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View Answer Z

Which account is the odd one out?


aOffice furniture and equipment

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bFreehold land and building

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cStock of raw materials

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dPlant and machinery

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The owner of consignment stock is


aConsignor

✓


bConsignee

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cDebtors

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dNone of the above

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View Answer Consignor

Dismantling and demolition charges is a


aDeferred Revenue expenditure

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bCapital expenditure

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cRevenue expenditure

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dNone of the above

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View Answer Revenue expenditure

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