971. If by error, any revenue omitted to be recorded it will:
A: Understate the profit
B: Overstate the profit
C: Both understate and overstate the profit
D: Having no effect on profit
972. If there is any error in cash account, it will affect:
A: Trading account
B: Profit and loss account
C: Balance sheet
D: Both trading and profit and loss account
973. IF the error is committed in liabilities account, it will have its impact – on:
A: Trading account only
B: Profit and loss account only
C: Profit and loss account as well as trading account
D: None of these
974. When all the errors are rectified and posted to the suspense account the suspense account shows:
A: Debit balance
B: Credit balance
C: Both sides are equal
D: None of these
975. In the case of double-sided errors, the correct entry should be equal to:
A: Wrong entry + rectifying entry
B: Wrong entry + suspense entry
C: Rectifying entry + suspense entry
D: Correct entry + Rectifying entry
976. Under or overcasting of a subsidiary book is an example of an error of:
A: Omission
B: Principle
C: Both Omission and principle
D: Commission
977. Errors that affect profit and loss relate to:
A: Real account
B: Personal account
C: Nominal account
D: None of these
978. Errors of carry forward effect:
A: Impersonal accounts
B: Personal accounts
C: Both personal and impersonal accounts
D: None of these
979. All of the following are characteristics of Group Bonus Scheme EXCEPT:
(A) A standard time is set for the completion of a job
(B) If the time taken is greater than the time allowed, the workers in the group receive time wages
(C) If the time taken is less than the time allowed, the group receives a bonus on time saved
(D) If the time taken is greater than the time allowed, the workers in the group receive time deductions for extra hours
980. A Blanket Rate is:
(A) A single rate which is used throughout the organization departments
(B) A double rate which is used throughout the organization departments
(C) A single rate which is used in different departments of the organization
(D) None of the given options
Admin