Question 1

Which of the following is not a deferred revenue expenditure?

Accepted Answer

A) Expenses in connection with issue of equity shares 
B) Preoperative expenses 
C) Heavy advertising expenses to introduce a new product 
D) Legal expenses incurred in defending a suit for breach of contract to supply goods 
A) Expenses in connection with issue of equity shares 
B) Preoperative expenses 
C) Heavy advertising expenses to introduce a new product 
D) Legal expenses incurred in defending a suit for breach of contract to supply goods

Question 2

Which one of the following should be considered a revenue expenditure?

Accepted Answer

A) 1000 paid for the execution of a new plant 
B) Loss of `10,000 incurred in increasing the sitting accommodation of a hotel 
C) Damage paid on account of breach of a contract to supply certain goods 
D) Repair to machinery purchased, second hand. 
A) 1000 paid for the execution of a new plant 
B) Loss of `10,000 incurred in increasing the sitting accommodation of a hotel 
C) Damage paid on account of breach of a contract to supply certain goods 
D) Repair to machinery purchased, second hand.

Question 3

While finalizing the current year's accounts, the company realized that an error was made in the calculation of closing stock of the previous year. In the previous year, closing stock was valued more by ` 50,000. As a result

Accepted Answer

A) Previous year's profit is overstated and current year's profit is also overstated. 
B) Previous year's profit is understated and current year's profit is overstated. 
C) Previous year's profit is overstated and current year's profit is understated. 
D) There will be no impact on the profit of either the previous year or the current year. 
A) Previous year's profit is overstated and current year's profit is also overstated. 
B) Previous year's profit is understated and current year's profit is overstated. 
C) Previous year's profit is overstated and current year's profit is understated. 
D) There will be no impact on the profit of either the previous year or the current year.

Question 4

Purchase journal is kept to record

Accepted Answer

A) All purchases of goods . 
B) All credit purchases of goods . 
C) All credit purchases. 
D) None of these 
A) All purchases of goods . 
B) All credit purchases of goods . 
C) All credit purchases. 
D) None of these

Question 5

The adjustment to be made for income received in advance is:

Accepted Answer

A) Add income received in advance to respective income and show it as a liability 
B) Deduct income received in advance from respective income and show it as a liability 
C) Add income received in advance to respective income and show it as asset 
D) Deduct income received in advance from respective income and show it as an asset in the Balance Sheet 
A) Add income received in advance to respective income and show it as a liability 
B) Deduct income received in advance from respective income and show it as a liability 
C) Add income received in advance to respective income and show it as asset 
D) Deduct income received in advance from respective income and show it as an asset in the Balance Sheet

Exam 31: Errors, Adjustments, and Expenditures in Accounting

Which of the following is not a deferred revenue expenditure?

Which one of the following should be considered a revenue expenditure?

While finalizing the current year's accounts, the company realized that an error was made in the calculation of closing stock of the previous year. In the previous year, closing stock was valued more by ` 50,000. As a result

Purchase journal is kept to record

The adjustment to be made for income received in advance is:

Exploring Features and Advantages of Computerized Accounting Systems

Exploring Computerized Accounting Systems and Software

Non-Profit Organizations and Financial Statements

Not-For-Profit Organizations and Financial Accounts

Goodwill and Intangible Assets

Valuation and Calculation of Goodwill

Understanding the Concepts of Lessor, Lessee, and Minimum Rent

Royalty Accounting and Partnership Firms

Accounting

Accounting and Corporate Finance

Accounting and Finance

Depreciation, Share Capital, and Forfeiture of Shares

Financial Statements and Accounting Principles

Insurance Provision and Accounting Standards

Formation and Capital Structure of Public Companies

Share Forfeiture, Debentures, and Sinking Fund

Financial Accounting and Banking

Insurance and General Insurance Companies: Understanding Terms and Concepts

Single Entry System and Company Ownership

Share Capital and Shareholders in a Company

Debentures, Bonds, and Shares

Accounting Concepts and Principles

Accounting Concepts and Practices

Financial Statements and Accounting for Nonprofit Organizations

Hire Purchase, Sale of Goods, and Bookkeeping

Accounting and Bookkeeping

Allocation of Selling Expenses Among Departments Based on Sales

Accounting Concepts and Systems

Accounting and Financial Transactions

Ac Types, Balances, and Entries

Capitalization, Errors, Cash Book, and Types of Accounts

Revenue Recognition and Expenditure Classification

Depreciation and Asset Provision

Accounting Adjustments and Financial Statement Treatment

Balance Sheet and Profit Loss Account

Accounting and Financial Management

Bills of Exchange, Consignment, and Partnership

Accounting Standards and Joint Ventures

Accounting and Financial Management : Part A

Accounting and Financial Management : Part B

Accounting: Interest, Bill, Partnership Agreement,insurance, Contingent Liability, and Business Resources

Fundamentals of Accounting: Objectives, Concepts, and Principles

Depreciation and Reserves: Understanding the Accounting Concepts

Underwriting and Creditor Questions in Company Affairs

Amalgamation, Llp, and Single Entry System

Single Entry System and Profit Calculation

Accounting for Receipts, Payments, Income, and Expenditure in Consignment and Joint Venture Businesses

Accounting for Co-Venturers, Consignments, and Branches

Accounting Arrangements and Operations for Branches

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