Deck 32: Capitalization, Errors, Cash Book, and Types of Accounts

Question 1

Which of the following items should not be capitalized relating to fixed assets?

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

Answer 1

Administration and general expenses

Question 2

Which of these errors affect only one account

A)Errors of casting .
B)Errors of carry forward .
C)Errors of posting .
D)All the three

Answer 2

All the three

Question 3

Which of these errors affect two or more accounts

A)Errors of complete omission .
B)Errors of principle .
C)Errors of posting to wrong account.
D)All the three

Answer 3

All the three

Question 4

Which of the following error is an error of principle

A)5,000 received from Sham credited to Ram A/c
B)5,000 incurred on installation of new plant debited to travelling expenses A/c
C)500 paid for wages debited to salary A/c
D)500 being purchase of raw material debited to purchase A/c ` 50

Question 5

Which of the following is an one sided error

A)500 purchase of old equipment not recorded in the books of A/c at all.
B)500 being expense on travelling expense credited to travelling expenses.
C)Both .a and b
D)None

Question 6

Any gain on the sale of non-current assets should be _________ from the net profit and the loss must be _________to the net profit in determining fund from operation

A)Added, Reduced .
B)Added, Added .
C)Deducted, Added .
D)Deducted, Deducted

Question 7

Cash book records-

A)Only cash sales .
B)All types of cash receipts and payments .
C)Only revenue receipts
D)Only capital receipts

Question 8

In a three column cash book ---------- does not exist

A)Cash column .
B)Bank column .
C)Petty cash column .
D)Discount column

Question 9

Which of these transactions will not be recorded in cash book-

A)Cash received from debtors .
B)Cash paid to creditors .
C)Salary remained outstanding
D)Cash deposited with bank

Question 10

The closing balance of a petty cash book is a / an -

A)Liability .
B)Gain .
C)Assets .
D)Loss

Question 11

Which column of a cash book will not have credit balance -

A)Bank column .
B)Discount column .
C)Cash column .
D)None

Question 12

Petty cash balance is a/an -

A)Assets .
B)Expenditure .
C)Liability .
D)None

Question 13

Which of these is a Part of cash in hand

A)Postage stamps .
B)B/R .
C)Cheque Deposited with Bank .
D)B/R endorsed

Question 14

Which of the following is a Real A/c

A)Salary A/c .
B)Bank A/c .
C)Building A/c .
D)Goodwill A/c

Question 15

Which of the following is a Personal A/c

A)Outstanding Salary A/c .
B)Rent A/c .
C)SBI A/c .
D)Bad debts A/c

Question 16

Which of the following is a representative Personal A/c

A)Outstanding Salary A/c .
B)Rent A/c .
C)SBI A/c .
D)Bad debts A/c

Question 17

Which of the following is a Nominal A/c

A)Outstanding Salary A/c .
B)Rent A/c .
C)SBI A/c .
D)Debtors A/c

Question 18

Goodwill A/c is a/an -

A)Nominal A/c .
B)Tangible Asset .
C)Intangible Asset .
D)Fictitious Asset

Question 19

Posting is the process of -

A)Posting the letters in drop box .
B)Posting suitable person to a suitable job.
C)Entering in the ledger the information contained in the ledger .
D)All the three

Question 20

A book wherein various accounts are opened is called-

A)Subsidiary books .
B)Journal .
C)Ledger .
D)Trial Balance

Question 21

Which of these is not a special purpose journal

A)Cash journal .
B)Purchase journal .
C)Debtors journal .
D)Sales journal

Question 22

The periodic total of sales day book is posted to -

A)Sales A/c .
B)Cash sales A/c .
C)Sales return A/c .
D)Credit sales A/c

Question 23

The periodic total of purchase day book is posted to -

A)Purchase register .
B)Purchase A/c .
C)Cash purchase A/c .
D)Credit purchase A/c

Question 24

Capital expenses are shown in -

A)Balance Sheet .
B)Profit and Loss A/c .
C)Trading A/c .
D)None of these

Question 25

Revenue receipts are shown in -

A)Balance Sheet .
B)Profit and Loss appropriation A/c .
C)Manufacturing A/c.
D)Trading and Profit and Loss A/c