FS of Sole Proprietorship Test

Result

FS of Sole Proprietorship Test - 4

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Weekly Quiz Competition

Question 1
1 / -0

Drawings account is a:

A
Personal Account

B
Real Account

C
Company drawing account

D
Nominal Account

Solution

drawing account is owner's account.so it is personal account.
Question 2
1 / -0

Goods destroyed by fire should be credited to:

A
Insurance account

B
Purchases account

C
Loss of goods by fire account

D
Sales account

Solution

the journal entry for goods loss by fire is

loss by fire a/c dr

to purchases a/c
Question 3
1 / -0

Revenue expenditure is intended to benefit _________.

A
Past period

B
Current period

C
None of these

D
Future period

Solution

it is incurred to meet day to day expenses of business.
Question 4
1 / -0

Any expenditure incurred in order to reduce the operating expenses is ________.

A
Promotional expenditure

B
Deferred revenue expenditure

C
Revenue expenditure

D
Capital expenditure

Solution

operating cost can be reduced by improving or aquiring new machines . purchase or improvement in asset is capital expenditure.
Question 5
1 / -0

Wages paid for erection of machinery are debited to __________.

A
Profit and loss account

B
Deferred wages account

C
Machinery account

D
Wages account

Solution

wages paid for erection is capital expenditure and it will be added to machinery account.
Question 6
1 / -0

Preliminary expenses are

A
Deferred revenue receipt

B
Fictitious asset

C
Revenue receipt.

D
Deferred capital receipt.

Solution

these are the expenses incurred before starting a business. they are written off over the years of the business.
Question 7
1 / -0

Amount paid for acquiring goodwill is __________.

A
Capital expenditure

B
Revenue expenditure

C
Deferred revenue expenditure

D
Deferred capital expenditure.

Solution

goodwill is considered as an asset so amount spent on aquiring goodwill will be capital expenditure.
Question 8
1 / -0

which branch of accounting helps to ascertain profit and loss for the year and also shows the financial position?

A
Human resource accounting.

B
Management account

C
Cost accounting

D
Financial accounting

Solution

it is the branch which calculates the profit and loss and also shows the financial position through the balance sheet.
Question 9
1 / -0

Which of the following is false regarding capital expenditure

A
Capital expenditure gives benefit over a short period

B
When expenditure incurred for increasing the earning capacity of the business.

C
Capital expenditure is recorded in balance sheet.

D
When an amount is incurred in non-recurring in nature.

Solution

capital expenditure is the expenditure which is done on long term assets and liabilities. so it is for long term.
Question 10
1 / -0

Which of the following are an example of Revenue Expenditure
(a) Preliminary expenses for floating a company
(b) Renewal expenses/fee of patent.
(c) Depreciation on fixed assets.
(d) Repair of machinery normal or due to negligence of operator
(e) Expenses for obtaining a license.
Options are as follows

A
c,d,e

B
a,b,c,d,

C
b,c,d

D
a,b,c,d,e,

Solution

expenses in the option b c and d are recurring in nature. so they are revenue expenditure.

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Re-Attempt Weekly Quiz Competition

FS of Sole Proprietorship Test - 4

Result

FS of Sole Proprietorship Test - 4

Score

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Rank

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SHARING IS CARING

Question 1

Personal Account

Real Account

Company drawing account

Nominal Account

Solution

Question 2

Insurance account

Purchases account

Loss of goods by fire account

Sales account

Solution

Question 3

Past period

Current period

None of these

Future period

Solution

Question 4

Promotional expenditure

Deferred revenue expenditure

Revenue expenditure

Capital expenditure

Solution

Question 5

Profit and loss account

Deferred wages account

Machinery account

Wages account

Solution

Question 6

Deferred revenue receipt

Fictitious asset

Revenue receipt.

Deferred capital receipt.

Solution

Question 7

Capital expenditure

Revenue expenditure

Deferred revenue expenditure

Deferred capital expenditure.

Solution

Question 8

Human resource accounting.

Management account

Cost accounting

Financial accounting

Solution

Question 9

Capital expenditure gives benefit over a short period

When expenditure incurred for increasing the earning capacity of the business.

Capital expenditure is recorded in balance sheet.

When an amount is incurred in non-recurring in nature.

Solution

Question 10

c,d,e

a,b,c,d,

b,c,d

a,b,c,d,e,

Solution

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