Which of the following is a capital expenditure?
(A) Repair of plant and machinery
(B) Salary paid to workers
(C) Cost of stand by equipment
(D) Annual whitewash of the office building
Which of the following is a revenue expenses?
(A) Raw material consumed
(B) Plant purchased
(C) Long term loan raised from bank
(D) Share Capital
Revenue is generally recognized as being earned at that point of time when?
(A) sale is effected
(B) cash is received
(C) production is completed
(D) debts are collected
Revenue receipts are shown in___________?
(A) Balance Sheet
(B) Profit and Loss appropriation A/c
(C) Manufacturing A/c
(D) Trading and Profit and Loss A/c
Provision is created for____________?
(A) Unknown Liabilities
(B) Known Liabilities
(C) Creation of Secret Reserves
(D) All the Three
Which of the following is not a cause of difference in balance as per cash book and balance as per bank pass book___________?
(A) Errors in cash book
(B) Errors in pass book
(C) Cheques deposited and cleared
(D) Cheques issued but not presented for payment
Debit balance as per bank pass book mean_____________?
(A) Surplus cash
(B) Bank Overdraft
(C) Terms deposits with bank
(D) None of these
Benefits of preparing Bank Reconciliation Statement includes___________?
(A) It bring out any errors committed in preparation of Cash book / Bank Pass Book
(B) Highlights under delay in clearance of cheques deposited but not credited
(C) Help know actual bank balance
(D) All the three
Bank reconciliation statement is a part of_________?
(A) Cash book
(B) Trial balance
(C) Auditors report
(D) None of these
Bank reconciliation is a statement prepared to reconcile__________?
(A) Trial balance
(B) Cash book
(C) Bank A/c
(D) Cash as per cash book with bank balance as per bank pass book