Accounting for Managers

501. Any donation received for a specific purpose is a ______________.

  1. Liability
  2. Assets
  3. revenue receipt
  4. capital receipts
Correct answer: (D)
capital receipts

502. Purchase of Typewriter would result in ______________ of fund.

  1. Change
  2. application
  3. Service
  4. no flow
Correct answer: (C)
Service

503. Depreciation deducted from the concerned ______________.

  1. Liability
  2. Asset
  3. Expenses
  4. Incomes
Correct answer: (B)
Asset

504. Excess of income over expenditure in shown on the ______________ side of income and expenditure account.

  1. Credit
  2. Debit
  3. Upper
  4. Lower
Correct answer: (B)
Debit

505. Subscriptions received in advance will figure in the ______________.

  1. balance sheet
  2. receipts and payment account
  3. income and expenditure account
  4. revenue account
Correct answer: (A)
balance sheet

506. Specific donations received by a non-trading concern are usually ______________.

  1. revenue receipt
  2. capital receipt
  3. capital expenditur
  4. revenue expenditure
Correct answer: (B)
capital receipt

507. Subscription received in advance is ______________.

  1. an income
  2. an asset
  3. a liability
  4. an expense
Correct answer: (C)
a liability

508. ______________ is given to promote sales.

  1. Cash discount
  2. Trade discount
  3. Quantity discount
  4. Price discount
Correct answer: (B)
Trade discount

509. The basic function of financial accounting is to ______________

  1. record all business transactions
  2. interpret the financial data
  3. assist the management in performing functions effectively
  4. information to management
Correct answer: (A)
record all business transactions

510. Ledger is a book of ______________empor

  1. original entry
  2. final entry
  3. all cash entry
  4. all credit entry
Correct answer: (B)
final entry
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