Financial Statements Test

Result

Financial Statements Test - 3

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Weekly Quiz Competition

Question 1
1 / -0

Revenue Expenditure means

A
The expenditure which is incurred for the day to day running of the business

B
The amount which is incurred in acquiring or improving the value of fixed assets

C
Both

D
None

Solution

revenue expenditure are the expenses incurred to match the revenue. these are the expenses which are done to run the day to day business.
Question 2
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 3
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

capital receipts are those which reduces the fixed assets and increases the long term liability. increasing capial and raising loan increase the liablity so they are capital receipt. similarly sale of nassets leads to decrease in assets so it is also capital receipts so all the option are correct.
Question 4
1 / -0

Which one of the following should be considered revenue expenditure?

A
Loss of Rs. 10000 incurred in increasing the sitting accommodation of hotel.

B
Rs. 1000 paid for the execution of a new plant.

C
Damage paid on account of breach of a contract to supply certain goods.

D
Repairs to machinery purchased

Solution

this transcation does not affect the assets and liabilities so it is revenue expenditure.
Question 5
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

D
None

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 6
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 7
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.
Question 8
1 / -0

_____ is the arrangement of various assets and liabilities in a particular order

A
Balancing

B
Marshalling

C
Grouping

D
All of these

Solution

marshalling refers to the arrangement of assets and liabilities in particular order. it can be done in two ways- on the basis of permanence and on the basis of liquidity.
Question 9
1 / -0

Revenue expenditure is intended to benefit _________.

A
Future period

B
Past period

C
Current period

D
None of these

Solution

it is incurred to meet day to day expenses of business.
Question 10
1 / -0

Amount paid for acquiring goodwill is __________.

A
Deferred capital expenditure.

B
Revenue expenditure

C
Deferred revenue expenditure

D
Capital expenditure

Solution

goodwill is considered as an asset so amount spent on aquiring goodwill will be capital expenditure.

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Re-Attempt Weekly Quiz Competition

Financial Statements Test - 3

Result

Financial Statements Test - 3

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Rank

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SHARING IS CARING

Question 1

The expenditure which is incurred for the day to day running of the business

The amount which is incurred in acquiring or improving the value of fixed assets

Both

None

Solution

Question 2

Cash Flow statement

Audit report

Statements of retained earnings

Income statement

Solution

Question 3

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 4

Loss of Rs. 10000 incurred in increasing the sitting accommodation of hotel.

Rs. 1000 paid for the execution of a new plant.

Damage paid on account of breach of a contract to supply certain goods.

Repairs to machinery purchased

Solution

Question 5

Deferred capital expenditure

Deferred revenue expenditure

Both

None

Solution

Question 6

Factory expenses

Manufacturing Wages

Postage and telegram expense

Carriage on purchase

Solution

Question 7

Revenue

Liability

Asset

Expense

Solution

Question 8

Balancing

Marshalling

Grouping

All of these

Solution

Question 9

Future period

Past period

Current period

None of these

Solution

Question 10

Deferred capital expenditure.

Revenue expenditure

Deferred revenue expenditure

Capital expenditure

Solution

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