1) Amount spent on increasing the seating capacity in a cinema hall is a) Capital expenditure b) Revenue expenditure c) Deferred revenue expenditure d) None of the above. 2) Expenditure incurred Rs 20,000 for trial run of a newly installed machinery will be a) Preliminary expense b) Revenue expenditure c) Capital expenditure d) Deferred revenue expenditure 3) Interest on bank deposits is a) Capital receipt b) Revenue receipt c) Capital expenditures d) Revenue expenditures 4) Amount received from IDBI as a medium term loan for augmenting working capital a) Capital expenditures b) Revenue expenditures c) Revenue receipts d) Capital receipt 5) Revenue expenditure is intended to benefit a) Past period b) Future period c) Current period d) Any period 6) Pre-operative expenses are a) Revenue expenditure b) Prepaid revenue expenditure c) Deferred revenue expenditure d) Capital expenditure 7) Closing stock is an item of . a) Fixed asset b) Current asset c) Fictitious asset d) Intangible asset 8) Balance sheet is a) An account b) A statement c) Neither a statement nor an account d) None of the above 9) Net profit of the business increases the a) Drawings b) Receivables c) Debts d) Capital 10) Carriage inwards will be shown a) In the trading account b) In the profit and loss account c) On the liabilities side d) On the assets side 11) Bank overdraft should be shown a) In the trading account b) Profit and loss account c) On the liabilities side d) On the assets side 12) Balance sheet shows the of the business. a) Profitability b) Financial position c) Sales d) Purchases 13) Drawings appearing in the trial balance is a) Added to the purchases b) Subtracted from the purchases c) Added to the capital d) Subtracted from the capital 14) Salaries appearing in the trial balance is shown on the a) Debit side of trading account b) Debit side of profit and loss account c) Liabilities side of the balance sheet d) Assets side of the balance sheet 15) Current assets does not include a) Cash b) Stock c) Furniture d) Prepaid expenses 16) Goodwill is classified as a) A current asset b) A liquid asset c) A tangible asset d) An intangible asset 17) A prepayment of insurance premium will appear in a) The trading account on the debit side b) The profit and loss account on the credit side c) The balance sheet on the assets side d) The balance sheet on the liabilities side 18) Net profit is a) Debited to capital account b) Credited to capital account c) Debited to drawings account d) Credited to drawings account 19) Closing stock is valued at a) Cost price b) Market price c) Cost price or market price whichever is higher d) Cost price or net realisable value whichever is lower 20) Accrued interest on investment will be shown a) On the credit side of profit and loss account b) On the assets side of balance sheet c) Both On the credit side of profit and loss account and On the assets side of balance sheet d) None of these 21) If there is no existing provision for doubtful debts, provision created for doubtful debts is a) Debited to bad debts account b) Debited to sundry debtors account c) Credited to bad debts account d) Debited to profit and loss account 22) In accounting, computer is commonly used in the following areas: a) Recording of business transactions b) Payroll accounting c) Stores accounting d) All the above 23) Customised accounting software is suitable for a) Small, conventional business b) Large, medium business c) Large, typical business d) None of the above 24) Which one is not a component of computer system? a) Input unit b) Output unit c) Data d) Central Processing Unit 25) An example of output device is a) Mouse b) Printer c) Scanner d) Keyboard 26) One of the limitations of computerised accounting system is a) System failure b) Accuracy c) Versatility d) Storage 27) Which one of the following is not a method of codification of accounts? a) Access codes b) Sequential codes c) Block codes d) Mnemonic codes 28) TALLY is an example of a) Tailor-made accounting software b) Ready-made accounting software c) In-built accounting software d) Customised accounting software 29) People who write codes and programes are called as a) System analysts b) System designers c) System operators d) System programmers 30) Accounting software is an example of a) System software b) Application software c) Utility software d) Operating software

+1 Acc L 11 - L 14 (EM)

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