Q. Which of these is not a Business expense-
✅ Correct Answer: (B)
LIC Premium of proprietor ;
Financial Accounting MCQs and Notes
Q. When a person purchasing goods on credit he becomes a………….. in the books of the seller-
✅ Correct Answer: (A)
Debtor ;
Q. The entry for creating a Provision for bad debts is
✅ Correct Answer: (D)
Debit Profit and Loss A/c and credit Provision for Bad Debts A/c.
Q. Bad debts recovered account will be transferred to
✅ Correct Answer: (D)
Either (b )or (c) above
Q. —————— is also known as Appraisal system of depreciation
✅ Correct Answer: (A)
Inventory system ;
Q. Schedule XIV of the Companies Act specifies —————— as minimum rate of depreciation (WDV) on ship fishing vessels
✅ Correct Answer: (A)
27% ;
Q. Which of the following is not depreciated
✅ Correct Answer: (B)
Land ;
Q. Depreciation is a process of —
✅ Correct Answer: (B)
Allocation of cost over the useful life of assets
Q. Which of the following is an external cause of depreciation
✅ Correct Answer: (C)
Obsolescence ;
Q. Depreciation is calculated on the
✅ Correct Answer: (C)
Cost+ Transport+ Installation expenses;