Foundation PN-2 Accounts and Cost Quiz 1

1. Nominal Account represents

2. Money spent ₹ 10,000 as travelling expenses of the directors on trips abroad for purchase of capital assets is

3. Amount of ₹ 5,000 spent as lawyers’ fees to defend a suit claiming that the firm’s factory site belonged to the plaintiff’s land is:

4. Insurance claim received on account of machinery damaged completely by fire is

5. A bad debt recovered during the year will be

6. All revenue receipts and expenditures are shown in

7. Compensation received from government for compulsory acquisition of land

8. Received from Soloman & co., an invoice for ₹ 1,500 for repairs to factory walls

9. Import duty of raw material purchased

10. Cost of goods purchased for resale is an example of

11. Life membership fees received by a club is a

12. Entrance fee of ₹ 20,000 received by a club is a

13. ₹ 5,000 incurred for up gradation of computer by installation of 128 MB Ram is

14. Which of the following transaction is of capital nature

15. Capital expenditures are recorded in the

16. An expenditure is capital in Nature when

17. P & L Account is prepared for period of one year by following

18. Omission of paise and showing the round figures in Financial Statements is based on

19. Fixed Assets and Current Assets are categorized as per concept of

20. Provision for bad debt is made as per the

21. Accounting does not record non-financial transactions because of

22. The determination of expenses for an accounting period is based on the concept of

23. Accounting provides information on :

24. The main Purpose of Financial Accounting is?

25. The revenues and expenses of a company are displayed in which statement?