931. Which of the following elements must be taken into account while calculating the total earnings of a worker under different incentive wage schemes?
(A) Rate per unit
(B) Units of production
(C) Extra time taken by an employee to complete the production
(D) Number of workers employed
932. A store ledger card is similar to the _?
(A) Stock ledger
(B) Bin card
(C) Material card
(D) Purchase requisition card
933. Any donation received for a specific purpose is a:
A: Liability
B: Assets
C: Revenue receipts
(D) Capital receipts
934. Which of the following is an item of capital expenditure?
A: Research and development costs during the year
B: Interest on borrowed fund utilized for the acquisition of Office Furniture
(C) Installation charges paid in conjunction with the purchase of Office Equipment
D: Monthly rent of machinery used in the business
935. The adjustment to be made for income received in advance is:
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 an asset
D: Deduct income received in advance from respective income and show it as an asset in the Balance Sheet
936. Which of the following statements is correct about Trial Balance?
A: The Trial Balance is prepared after preparing the Profit and Loss Account
B: The Trial Balance shows only balances of Assets and Liabilities
C: The Trial Balance shows only nominal account balances
(D) The Trial Balance has no statutory importance from the point of view of law
937. 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
A: Previous year’s profit is overstated and current year’s profit is overstated
B: Previous year’s profit is understated and current year’s profit is overstated
D: Previous year’s profit is overstated and current year’s profit is understated
(C) The retained earnings were overstated during 2011-2012, and retained earnings will be understated during 2012-2013
938. Which of the following errors is an error of omission?
A: Sale of ` 100 was recorded in the Purchases Journal
B: Wages paid to Mohan has been debited to his account
(C) The total of the sales journal has not been posted to the Sales Account
D: Repairs to buildings have been debited to the buildings account
939. Journals are also referred to as:
A: Book of entries
(B: Book of original entries)
C: T account
D: Books of economic events
940. The standard format of the journal does not include which of the following?
A: Assets column
B: Date column
C: Description column
(D: Amount column)
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