If debit side of receipt and payment account exceeds credit it represents __________
1.Cash at bank
2.Bank overdraft
3.Deficit balance
4.Surplus balance
Lighting expenses should be divided among the different departments on the basis of _________
1.light points
2.HP of machine
3.sales ratio
4.floor are
Loss of usefulness occasioned by improved production methods is known as_______
1.physical deterioration
2.obsolescence
3.disuse
4.inadequacy
Power expenses should be divided among the different departments on the basis of _____
1.light points
2.HP of machine
3.sales ratio
4.floor are
The balance in the asset account will not be reduced to zero under this method _____
1.straight line method
2.written down value metho
3.annuity metho
4.depreciation fund metho
The permanent continuing and gradual shrinkage in the book value of a fixed asset is called _______
1.depreciation
2.appreciation
3.reduction
4.computation
Under depreciation fund method depreciation is charged to ______
1.profit and loss account
2.trading account
3. balance sheet
4.p & l appropriation account
An advance receipt of subscription from a member of the non-profit organization is considered as an __________
1.Expense
2.Liability
3.Equity
4.Asset
Carriage inward expenses should be divided among the different departments on the basis of ___________
1.light points
2.purchase value
3.sales ratio
4.floor are
Deficit balance can be shown in balance sheet as
1.Liability
2.Assets
3.Owner s equity
4.None of above
Depreciation applies to________
1.current assets
2.wasting assets
3.intangible assets
4.fixed assets
Depreciation arises because of_____
1.fall in the market value of an asset
2.physical wear and tear
3.fall in the value of money
4.rise in the value of money
Depreciation fund is also called ______
1.reserve fun
2.compensation fun
3.workers fun
4.sinking fun
Depreciation is a process of _________
1.valuation
2.reductionallocation
3.allocation
4.appreciation
Depreciation is charged on the_________
1.market value
2.Depreciable value
3.purchase value
4.sale value
Depreciation is charged on_________
1.continuous basis
2.temporary basis
3.daily basis
4.monthly basis
Diminishing balance method is also called _________
1.written down value method
2.annuity metho
3.depreciation fund metho
4.Fixed installment metho
ESI PF payable by employer should be divided among the different departments on the basis of ________
1.number of worker in each department
2.number of machines in each department
3.wages of each department
4.floor area occupied by each department
Estimated sale value of the asset at the end of its economic life is known as _____
1.purchase value
2.market value
3.written down value
4.residual value
Expenses which can be directly identified with or incurred for particular department are called __________
1.direct expenses
2.indirect expenses
3.monthly expenses
4.weekly expenses
Expenses which cannot be identified with a particular department are called_______
1.direct expenses
2.indirect expenses
3.monthly expenses
4.weekly expenses
Factory manger s salary should be divided among the different departments on the basis of _____________
1.time devoted to each department
2. time spent in each department
3.time assigned to each department
4. time wasted in each department
Fire insurance and repairs on assets should be divided among the different departments on the basis of _________
1.light points
2.HP of machine
3.value of each assets
4.floor are
If debit side of income and expenditure account is greater it is termed as
1.Excess of income over expenditure
2.Net income
3.Surplus balance
4.Deficit balance
If the asset is sold the provision for depreciation relating to the asset sold is transferred to _______
1.asset account
2.liability account
3.P & L account
4.trading account
Income and expenditure account is based on _________ Accrual accounting
1.Cash accounting
2.Accrual accounting
3.Government accounting
4.Management accounting
Income tax authorities recognize this method ______
1.straight line method
2.written down value metho
3.annuity metho
4.depreciation fund metho
Mines quarries oilfields and forest are example of _______
1.fixed assets
2.current assets
3.wasting assets
4.intangible assets
Provision for depreciation account appears on the _______
1.Asset side
2.Liability side
3.P & L account debit side
4.P & L account credit side
Reciept and payment account includes _________
1.Revenue items
2. Capital items
3. Both capital and revenue items
4.None of above
Rent and rates should be divided among the different departments on the basis of ____
1.light points
2.HP of machine
3.sales ratio
4.floor are
Repairs to buildings maintenance of premises should be divided among the different departments on the basis of _________
1.light points
2.HP of machine
3.sales ratio
4.floor are
Selling expenses should be divided among the different department on the basis of _______
1.light points
2.HP of machine
3.sales ratio
4.floor are
The amount of depreciation charged on machinery will be debited to_____
1.machinery account
2.depreciation account
3.cash account
4.bank account
The asset account appears in the books at original cost when a ______
1.P & L account is maintaine
2.balance sheet is maintaine
3.provision for depreciation account is
4.maintaine
The control of non-trading concern rest in the hand of
1.Directors
2.Managing agents
3.Governing body
4.Promoters
The difference between the book value at the beginning and at the end (revaluation amount) is __________
1.depreciation
2.appreciation
3.reduction
4.computation
The main objective of providing depreciation is _______
1.to calculate true profit
2.to calculate financial position
3.to reduce tax burden
4.to reduce profit
The main source of income for non-trading concern is _________
1.Subscription
2.Sales
3.Dividend on investment
4.entrance fee
The receipts and payments account of a non-profit organization is a __________
1.Nominal account
2.Real account
3.Income statement account
4.Financial statement
Under annuity method the amount of depreciation is found out from _____
1.log tables
2.sinking fund tables
3.annuity tables
4.present value tables
Under depreciation fund method the amount of depreciation is calculated with reference to ________
1.log tables
2.sinking fund tables
3.annuity tables
4.present value tables
Under the diminishing balance method depreciation is calculated on____
1.original value
2.written down value
3.scrap value
4.market value
Under the straight line method of charging depreciation depreciation ____
1.increases every year
2.decreases every year
3. is constant
4.fluctuate every year
Under which method of depreciation the earlier year of the life of the asset profits are more _____
1.straight line metho
2.written down value metho
3.annuity metho
4.depreciation fund metho
Workmen s amenities and welfare expenses should be divided among the different departments on the basis of ____________
1.number of worker in each department
2.number of machines in each department
3.wages of each department
4.floor area occupied by each department