Adjustments Flashcards
The system of accounting in which accounting entries are made only when cash received or paid is known as
A. Cash system
B. Accrual system
C. Mercantile System
D. Single system
All those expenses which have become due but not paid are called
A. Accrued revenue
B. Prepaid revenue
C. Outstanding expenses
D. Advance expenses
The accounting system in which accounting entries are made on the basis of amount having become due for payment or receipt is called
A. Cash system
B. Accrual or Mercantile System
C. Outstanding system
D. None of these
All those expenses which have not become due but paid in advance are called
A. Accrued expenses
B. Outstanding expenses
C. Prepared expenses
D. Payable expenses
An income which has earned but not received is called
A. Unearned income
B. Accrued revenue
C. Revenue received in advance
D. None of these
The revenue that has not become due but received in cash in current year is known as
A. Revenue received in advance
B. Accrued revenue
C. Unearned revenue
D. Both a,b
A prepaid expenses is
A. An asset
B. A liability
C. An expense
D. An income
The accrued income or outstanding income will appear in the balance sheet as
A. An expense
B. A liability
C. An asset
D. Both a,b
Outstanding expense given in adjustment is called
A. An asset
B. A gain
C. An expense
D. A liability
A gradual decrease in value of fixed assets is called
A. Reduction
B. Revaluation
C. Depreciation
D. None of these
Depreciation is
A. A liability
B. A loss
C. An expense
D. Both B,C
From business point of you interest on capital is considered as
A. An income
B. An expense
C. A profit
D. A liability
Interest due but not received is
A. An outstanding expense
B. Accrued income
C. Prepaid expense
D. Unearned income
Interest on drawing is
A. An asset
B. A liability
C. An expense
D. A revenue
Net profit is always
A. Equal to gross profit
B. More than gross profit
C. Less than gross profit
D. None of these
Wages paid for installing a machines should be debited to
A. Wages account
B. Cash account
C. Machinery account
D. None of these
Net loss is always
A. Equal to gross loss
B. More than gross loss
C. Less than gross loss
D. None of these
Income Tax paid is a
A. Business expense
B. Revenue for business
C. Liability of business
D. Personal expense
Patent is an example of
A. Assets
B. Liabilities
C. Income
D. Expense
The amount becomes due from the customers is called
A. Allowance
B. Loan
C. Debts
D. Doubtful debts
The debts which are irrevocable from the deters are called
A. Debts
B. Doubtful debts
C. Bad debts
D. Good debts
Bad debts are business
A. Expense
B. Liabilities
C. Assets
D. Revenue
Bad debts recovered from deters should be credited to
A. Debtors account
B. Bad debts account
C. Bad debts recovered account
D. Cash account
The debts the recovery or realisation of which is uncertain are known as
A. Bad debts
B. Doubtful debts
C. Provision for doubtful debts
D. Loan
Provisions for the doubtful debts is debited to
A. Debtors account
B. Provision for bad bebt account
C. Profit or loss account
D. Bad debt recovered account
Business allow cash discount on making prompt payment to its
A. Creditors
B. Debtors
C. Partners
D. Investors
Business receive discount from its
A. Creditors
B. Debtors
C. Partners
D. Owners
Withdrawal of goods by the owner for his personal use must be credit to
A. Drawing account
B. Goods account
C. Purchases account
D. Capital account
If the closing stock appears in the trial balance it is taken only to the
A. Profit or loss account
B. Trading account
C. Balance sheet
D. Final account
The loss on the sale of old machinery is debited to
A. Machinery account
B. Depreciation account
C. Accumulated depreciation
D. Profit and loss account
Adjusting entries are made
A. During the accounting period
B. At the end of accounting year
C. In the beginning of the accounting year
D. At any time
Provisions for bad that’s should appear in the balance sheet is
A. A fictitious asset
B. Part of the share capital
C. A deduction from debtors
D. An addition to the good will
Bad debts are debited to
A. Debtors account
B. Creditors account
C. Provisions for bad debts account
D. Bad debts account
In the balance sheet pre received income is shown on
A. An asset side
B. Liabilities side
C. Both assets and liabilities side
D. None of these
Provisions for discount on creditors must be credited to
A. Creditors account
B. Provisions for discount on creditors account
C. Profit and loss account
D. Cash account
A
C
B
C
B
D
A
C
D
C
C
B
B
D
C
C
B
D
A
C
C
A
C
B
C
B
A
C
C
D
B
C
D
B
C
