11th Principles of Accounting MCQS Chapter 12

All expenses connected with the office and its conduct are called

Service expenses

Marketing expenses

Selling expenses

Administrative expenses

Allowance for doubtful debts normally has a

Credit balance

Debit balance

Both debit & credit balance

None of these

The gross amount of goods sold or services performed during an accounting period is known as

Sale

Gross profit

Net profit

Purchase

The inflow of assets in return for services performed or products delivered during a period is

Revenue

Non current asset

Asset

None of these

Which one of the following is a direct expense?

Traveling expense

Advertisement expense

Packing expense

Manufacturing expense

Cost incurred to generate revenue is called

Liability

Revenue

Cost

Expense

Allowance for discount on account receivable is calculated on the amount of account receivable

Left after deducting the allowance for doubtful debts

Before deducting the actual bad debts

Before deducting the allowance for doubtful debts

None of these

The amount by which the revenue for a particular period of time exceed from expenses incurred to generate them is called

Net income

Gross income

Revenue

Expenses

A statement which is prepared to know the financial position of a business on a particular date, is called

All of above

Position statement

Statement of condition

Balance sheet

Net purchases are equal to

Purchases + returns inwards

Purchases + returns outwards

Sales – returns outwards

Purchases – returns outwards