Tag: Financial Accounting Mcq

(A) Interest payable on loans or deferred credits taken for the acquisition or construction of fixed assets before they are ready for use
(B) Stand by equipment and servicing equipment
(C) Expenditure incurred on test runs and experimental production
(D) Administration and general expenses

(A) Increase in working capacity of an asset
(B) Reduction in operating costs
(C) Replacing damaged parts of an asset
(D) Both (a) and (c) above

(A) Compensation paid to Directors on termination of their services
(B) Expenditure incurred in connection with the renewal of a Trade Mark.
(C) Gratuities paid to Directors on termination of their services.
(D) Royalty paid in installments for the purchase of rights to manufacture and sell patient medicines.

(A) All the significant events after the Balance Sheet date
(B) The events after Balance Sheet date but before submitting it to the Registrar of Companies
(C) The events after Balance Sheet date but before its approval by the board
(D) All changes after Balance Sheet date before its approval

(A) Sales
(B) Purchases
(C) Inward returns
(D) Closing stock

(A) Provision for doubtful debts represents the amount that cannot be collected
(B) The distinction between capital and revenue items is important because it is of fundamental importance to the determination of profits
(C) Goods lost by fire need not be accounted for since they are not sales
(D) Free samples received are business gains

(A) Research and development costs during the year
(B) Interest on borrowed fund utilized for acquisition of Office Furniture
(C) Installation charges paid in conjunction with the purchase of Office Equipment
(D) Monthly rent of a machinery used in the business

(A) Liability
(B) Assets
(C) Revenue receipts
(D) Capital receipts