11th Principles of Accounting MCQS Chapter 5

The concession given by the supplier to the buyer on purchases of good is known as:

Trade discount

Discount received

Purchase discount

Sales discount

Bad debts recovered should be credited to

Balance Sheet

None of these

Profit & Loss a/c

Trading a/c

Gross profit represents

closing stock + direct expenses – sales

closing stock-purchases-direct expenses + sales

Opening stock + purchases

purchases – sales

Net profit is always

Less than gross profit

more than gross profit

Equal to gross profit

None of these

Interest on drawing is debited to

Outstanding expense

Sundry Creditors

Drawings

Capital

Interest paid on loan is

Maintenance Expenses

Financial Expenses

Management Expenses

Abnormal Loss

Income received in advance during the year is

Prepaid Expenses

Accrued Income

Advance Income

Advance Expenses

The person to whom a bill is addressed is the:

Debtor

Agent

Holder

Creditor

The creditor of the business are called:

Assets

Capital 

Income

Liabilities

Rent account’ is a kind of:

Real account

Personal account

Nominal account