Accounts - Principles of Accounts Questions
Question 1396:
Which of the following statements is not true of a non-profit making organization?
- A Income and expenditure account is prepared
- B Income and expenditure account excludes accruals and prepayments
- C Income and expenditure account excludes capital receipts and capital payments
- D Receipts and Payments account is a substitute for expenditure account
Question 1397:
A business which converts raw materials to finished goods prepares
- A Trading account and balance sheet
- B Profit and loss account and balane sheet
- C Balance sheet only
- D Trading profit and loss account and balance sheet
- E Manufacturing, trading, profit and loss account and balance sheet
Question 1398:
Payment of salaries to partners is
- A A charge to profit and loss account
- B A charge to trading account
- C An appropriation of divisible profit
- D An appropriation of interest on capital
- E An appropriation of interest on current account
Question 1399:
Accounting term used to describe the excess of current assets over current liabilities is
- A Shared capital
- B Working capital
- C Sucscribed capital
- D Reserve capital
- E Loan capital
Question 1400:
A delivery van was bought on credit. The transaction would be entered by the customer first in the
- A Purchases day book
- B Sales day book
- C Returns inwards book
- D Returns outwards book
- E Journal proper