Accounting Mcqs

Page No. 51

Which of the following is a capital expenditure?


aRepair of plant and machinery


bSalary paid to workers


cCost of stand by equipment


dAnnual whitewash of the office building



Maintaining interest rates at low levels is another way that governments seek to stimulate the economy, generate tax revenue, and, ultimately, reduce the national debt. Lower interest rates make it easier for individuals and businesses to borrow money. In turn, those borrowers spend that money on goods and services, which creates jobs and tax revenues. Low interest rates have been the policy by the United States, the European Union, the United Kingdom, and other nations during times of economic stress, with some degree of success. That noted, interest rates kept at or near zero for extended periods of time have not proved to be a panacea for debt-ridden governments.


aRaw material consumed


b Plant purchased


cLong term loan raised from bank


dShare Capital


View Answer Raw material consumed

Revenue is generally recognized as being earned at that point of time when?


asale is effected


bcash is received


cproduction is completed


ddebts are collected


View Answer sale is effected

Revenue receipts are shown in___________?


aBalance Sheet


bProfit and Loss appropriation A/c


cManufacturing A/c


dTrading and Profit and Loss A/c



Capital expenses are shown in___________?


aBalance Sheet


bProfit and Loss A/c


cTrading A/c


dNone of these


View Answer Balance Sheet

The periodic total of purchase day book is posted to____________?


aPurchase register


bPurchase A/c


cCash purchase A/c


dCredit purchase A/c


View Answer Purchase A/c

The periodic total of sales day book is posted to___________?


aSales A/c


bCash sales A/c


cSales return A/c


dCredit sales A/c


View Answer Sales A/c

Which of these is not a special purpose journal?


aCash journal


bPurchase journal


cDebtors journal


dSales journal


View Answer Debtors journal

A book wherein various accounts are opened is called____________?


aSubsidiary books


bJournal


cLedger


dTrial Balance


View Answer Ledger

Posting is the process of____________?


aPosting the letters in drop box


bPosting suitable person to a suitable job


cEntering in the ledger the information contained in the ledger


dAll the three



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