Financial Statements 1 Test 46

Result

Financial Statements 1 Test 46

Score
-
out of -
Rank
-
out of -

TIME Taken - -

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Weekly Quiz Competition

Question 1
1 / -0

Which of the following is Revenue Receipt?

A
Amount received which is not is the normal and ordinary course of business like sale of fixed assets.

B
Loan raised.

C
Fresh capital introduced or additional capital introduced

D
Income from non-operating business activities

Solution

Revenue receipts are those which do not affect the asset and liabilities. since income from non operating business activities do not affect asset and liabilities It is revenue receipt.
Question 2
1 / -0

Net profit is calculated by subtracting ________ from operating profit.

A
Cost of goods sold

B
Other income

C
Operating expenses

D
Net sales

Solution

Net profit is calculated by subtracting operating expenses from operating profit. Operating expenses are deducted from operating profit to arrive at the net profit, which represents the overall profitability of the business after considering all expenses.
Question 3
1 / -0

The primary objective of financial statements is to:

A
Determine employee salaries

B
Facilitate tax assessment

C
Provide information about the financial position and performance of a business

D
Regulate employee benefits

Solution

The primary objective of financial statements is to provide information about the financial position, performance, and changes in financial position of an entity, which assists various stakeholders in making economic decisions.
Question 4
1 / -0

Accounting provides information on:

A
Cost and income for managers

B
Company's tax liability for a particular year

C
Financial conditions of an institutions

D
All of the above

Solution

Accounting provides information on cost and income for managers, the company's tax liability for a particular year and the financial conditions of an institution.
Question 5
1 / -0

Following are the Financial statement except:

A
Cash Flow statement

B
Audit report

C
Statements of retained earnings

D
Income statement

Solution

Audit report is not a part of financial statements. It is a disclaimer issued by the auditor that all the information given in financial statement is correct.
Question 6
1 / -0

Capital receipt includes following receipts:

A
Fresh capital introduced or additional capital introduced

B
Loan raised

C
Amount received which is not is the normal and ordinary course of business like sale of fixed assets.

D
All of these

Solution

"All of these" correctly identifies that all the options listed - fresh capital introduced, loan raised, and amount received from the sale of fixed assets - are types of capital receipts. They contribute to increasing the capital or liabilities of the business, representing funds obtained from external sources or through internal restructuring.
Question 7
1 / -0

What is the appropriate treatment for deferred revenue expenditure in accounting?

A
It is recognized as an asset on the balance sheet.

B
It is fully expensed in the period it is incurred.

C
It is recognized as a liability on the balance sheet.

D
It is amortized over future periods.

Solution

Deferred revenue expenditure refers to expenses that are incurred in one accounting period but provide benefits over multiple periods. To match these expenses with the periods in which they provide benefits, they are not fully expensed in the period they are incurred. Instead, they are spread out or amortized over the periods during which they contribute to generating revenue or other future benefits.
Question 8
1 / -0

The expenditure whose amount is heavy and benefit of the likely to be derived over a number of years called ____________.

A
Deferred capital expenditure

B
Deferred revenue expenditure

C
Both (A) and (B)

D
None of these

Solution

Deferred revenue expenditure is the expenditure which is done once and benefits of it can be derived for a number of years example - advertisement expenditure.
Question 9
1 / -0

Which of the following will not be included in Trading account?

A
Factory expenses

B
Manufacturing Wages

C
Postage and telegram expense

D
Carriage on purchase

Solution

Postage and telegram are indirect expenses. They are not shown in trading account they are shown in debit side of profit and loss account.
Question 10
1 / -0

Accrued income is:

A
Revenue

B
Liability

C
Asset

D
Expense

Solution

Accrued income is considered as current asset as it is the income due but not received.

User

Question Analysis

Correct -
Wrong -
Skipped -

My Perfomance

Score
-
out of -
Rank
-
out of -

Re-Attempt Weekly Quiz Competition

Financial Statements 1 Test 46

Result

Financial Statements 1 Test 46

Score

-

Rank

-

SHARING IS CARING

Question 1

Amount received which is not is the normal and ordinary course of business like sale of fixed assets.

Loan raised.

Fresh capital introduced or additional capital introduced

Income from non-operating business activities

Solution

Question 2

Cost of goods sold

Other income

Operating expenses

Net sales

Solution

Question 3

Determine employee salaries

Facilitate tax assessment

Provide information about the financial position and performance of a business

Regulate employee benefits

Solution

Question 4

Cost and income for managers

Company's tax liability for a particular year

Financial conditions of an institutions

All of the above

Solution

Question 5

Cash Flow statement

Audit report

Statements of retained earnings

Income statement

Solution

Question 6

Fresh capital introduced or additional capital introduced

Loan raised

Amount received which is not is the normal and ordinary course of business like sale of fixed assets.

All of these

Solution

Question 7

It is recognized as an asset on the balance sheet.

It is fully expensed in the period it is incurred.

It is recognized as a liability on the balance sheet.

It is amortized over future periods.

Solution

Question 8

Deferred capital expenditure

Deferred revenue expenditure

Both (A) and (B)

None of these

Solution

Question 9

Factory expenses

Manufacturing Wages

Postage and telegram expense

Carriage on purchase

Solution

Question 10

Revenue

Liability

Asset

Expense

Solution

User

Question Analysis

My Perfomance

Score

-

Rank

-

Results Announcement on: coming Monday

Stay Tuned: We’ll update you on your result via email or SMS.