CBSE Questions for Class 11 Commerce Accountancy Financial Statements 2 Quiz 2 - MCQExams.com

In balance sheet, accrued income is shown under which head of assets _______________.
  • Intangible Assets
  • Current Assets
  • Fictitious Assets
  • Tangible Assets
 When income is received but the whole amount of it does not belong to the current period it is called as:
  • Pre-received income
  • Outstanding income
  • Capital income
  • Revenue income
What are the other names for income received in advance?
  • Unearned Income
  • Accrued Income
  • Pre-received income
  • Both A & C
Income received in advance will be deducted from _______. 
  • Debit side of profit & loss account
  • Credit side of profit & loss account
  • Debit side of trading account
  • Credit side of trading account
Accrued income will appear on the ____ side of the balance sheet. 
  • Asset
  • Liabilities
  • Debit
  • Credit
The account of accrued income will be shown on _________ side.
  • Debit side of profit & loss account
  • Credit side of profit & loss account
  • Debit side of trading account
  • Credit side of trading account
Reserve for doubtful debts is created when recovery of bad debts is _________.
  • Certain
  • Recovered
  • Not recovered
  • Doubtful
Depreciation is charged beacuse of ___________.
  • Wear and tear
  • Passage of time
  • Obsolescence
  • All of the above
Reserve for doubtful debts is made out of __________  profit .
  • gross 
  • capital
  • revenue
  • net
 The effect of adjustment of depreciation on net profit will be that _____.
  • it will decline
  • it will increase
  • no effect
  • None of the above
If the amount of bad debts appears in trial balance it is only recorded on ________.
  • credit side of profit & loss account
  • debit side of profit & loss account
  • debit side of trading account
  • current assets
New bad debts are added to ______.
  • Creditor account
  • Debtors account
  • Bad debts account
  • Cash account
Bad debts is ________ to  business concern.
  • profit
  • loss
  • income
  • expense
New bad debt is deducted from ______.
  • Old bad debts account
  • Creditors account
  • Debtors account
  • Profit & loss account
Irrecoverable part of debtors is called as ______.
  • Creditor
  • Discount
  • Bad debts
  • Earnings
Which of following amount is debited to profit & loss account.
  • Old Bad Debts
  • New Bad debts
  • New Reserves on doubtful debts
  • All of the above
The interest can be computed on the additional capital __________.
  • from the date on which it was brought into the business
  • from the beginning of year
  • from middle of the year
  • None of the above
When R.D.D. is given in Trial balance, it is known as_______________.
  • Old R.D.D.
  • New R.D.D.
  • Both of the above
  • None of the above
Interest on capital is added to______.
  • profit
  • cash
  • capital
  • interest
Interest on capital is ________ on business.
  • expense
  • loss
  • profit
  • income
Manager's Commission is __________ to company.
  • Loss
  • Profit
  • Expense
  • Income
Net profit of a business is Rs. 220 before charging commission. If the manager is entitled to 15% of the profit before charging such commission, the commission will be _____.
  • Rs. 44
  • Rs. 33
  • Rs. 20
  • Rs. 30
Interest is calculated at a given rate of interest on capital as at the _____ of the accounting year.
  • beginning of the year
  • ending of the year
  • additional capital
  • Both A & C
The manager of the business is sometimes given the commission on _______.
  • Salary
  • Purchase
  • Gross profit
  • Net profit
New R.D.D. is to be deducted from ________.
  • Bad debts
  • Debtors
  • Creditors
  • Cash
Which of the following transactions is of capital nature?
  • Purchase of a truck by a company
  • Replacement of old types and tubes
  • Yearly premium to insure the truck
  • Cost of repair of the truck
A, B and C are partners in a firm. Though there is no provision in the partnership deed for interest on capital, this has been provided in the account @ 10% p.a. for the two years ended on 31 Dec.,Their fixed capitals on which interest was calculated were throughout A Rs. 15,000, B Rs. 12,000 and C Rs. 9,Their profit sharing ratios were 2007 - 5:3:2 and 2008 - 2: 2:The necessary adjustment entry will be made as:
  • C's current a/c Dr. 360

    To A's current a/c 240

    To B's current a/c 120
  • A's current a/c Dr. 240

    B's current a/c Dr. 120

    To C's current a/c 360
  • A's current a/c Dr. 120

    B's current a/c Dr. 240

    To C's current a/c 360
  • C's current a/c Dr. 360

    To A's current a/c  120

    To B's current a/c 240
When a fixed asset is acquired in exchange for another asset, its cost is usually determined by reference to the_________________.
  • Net book value of the asset given up
  • Gross book value of the asset given up
  • Net book value of the asset acquired
  • Gross book of the asset acquired
Interest on capital will be ________.
  • debited to profit & loss account
  • credited to profit & loss account
  • debited to trading account
  • credited to trading account
In the absence of an agreement to the contrary, the partners _________________.
  • Are entitled 6% interest on their capitals, only when there are profits
  • Are entitled 6% interest on their capitals, whether there is profit or not
  • Are entitled for interest on capital at the bank rate, only when there are profits
  • Are not entitled for any interest on their capitals
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Practice Class 11 Commerce Accountancy Quiz Questions and Answers