11th Principles of Accounting MCQS Chapter 6

Preliminary expenses incurred before the commencement of business

capital expenditure

revenue expenditure

capital loss

deferred revenue expenditure

Which account will be created in the presence of suspense account, if sales book is undercast by Rs. 500

cash A/c

suspense A/c

sales A/c

none of above

A credit sale was wrongly passed through purchases book, the rectification of the entry will:

Decrease the net profit by double amount

Increase the net profit by, double amount

Have no effect on the net profit

Decrease the net profit

Bad debts are

revenue expenditure

deferred expenditure

capital expenditure

none of these

Capitalized expenditures are shown in

income statement

trading A/c

balance sheet

profit & loss A/c

Any difference in trial balance is transferred to

nominal account

purchases account

sales account

suspense account

Premium on issue of shares of a company represents

capital profit

none of these

capital payment

capital loss

Receipts, which are non-recurring by nature, are called

revenue receipts

capital receipts

current receipts

capital profit

Acceptance to Mr. A was posted to the debit of B’s account. The rectification of the entry will.

Decrease the net profit

Have no effect on net profit

Have double effect on net profit

Increase the net profit

The capital profit should be transferred to:

Balance Sheet

Profit and loss account

Trading account

Both Trading and profit and loss account and balance sheet