991. Any gain on the sale of non-current assets should be from the net profit and the loss must be to the net profit in determining funds from operation?
A: Added, Reduced
B: Added, Added
C: Deducted, Added
D: Deducted, Deducted
992. Cash book records?
A: Only cash sales
B: All types of cash receipts and payments
C: Only revenue receipts
D: Only capital receipts
993. Which one of the following should be considered a revenue expenditure?
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 the breach of a contract to supply certain goods
D: Repair to machinery purchased, second hand.
994. Which of the following statements is/are true? “Events after Balance Sheet are?
A: All the significant events after the Balance Sheet date
B: The events after the Balance Sheet date but before its approval by the board
C: The events after the Balance Sheet date but before submitting it to the Registrar of Companies
D: All changes after the Balance Sheet date before its approval
995. Which one of the following is a capital expenditure?
A: Compensation paid to Directors on termination of their services
B: Expenditure incurred in connection with the renewal of a Trade Mark.
C: Gratuities paid to Directors on termination of their services.
D: Royalty paid in installments for the purchase of rights to manufacture and sell patient medicines.
996. Which of the following enhances the earning capacity of an asset?
A: Increase in working capacity of an asset
B: Reduction in operating costs
C: Replacing damaged parts of an asset
D: Both and above
997. Cartage paid 100 $ for the newly purchased machinery, if debited to the cartage account will affect :
A. The machinery and cargo accounts both
B. Only Machinery account
C. Only cartage account
D. Only cash account
998. Goods purchased from Salman 3000 $ were passed through the sales book, The rectification of the error will :
A. Increase the gross profit
B. Decrease the gross profit
C. Have no impact on gross profit
D. Have a double impact on gross profit
999. An amount of 600 $ written off as bad, was received from X and was credited to X’s personal account. The rectification of this entry will:
A. Increase net profit by 600 $
B. Reduce net profit by 600 $
C. Increase net profit by 1200 $
D. Reduce net profit by 1200 $
1000. Awis’s account was debited for the sum of $1,000 that was paid to Ali in exchange for his acceptance. The error will be fixed in the following ways:
A. Increase the net profit
B. Decrease the net profit
C. Increase the net profit first, then decrease it
D. Have no effect on the company’s bottom line
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