Chapter-9 ➤ Financial Statements 1 1. Goodwill is a Fictitious Asset. Tangible Asset. Intangible Asset. Current Asset. 2. Expenses on overhauling a second-hand machine purchased is Revenue Expenditure. Capital Expenditure. Deferred Revenue Expenditure. None of these. 3. Balance Sheet is prepared with the balances of which of the following : All balances in the Ledger Balances of Personal Accounts Balances of Real Accounts Balances of Personal and Real Accounts 4. The purpose of preparing final accounts is to ascertain : Profit or loss Capital The value of assets Profit or loss and financial position 5. Balance Sheet gives information _. financial position during a particular period profit earning capacity for a particular period financial position as on a particular date operating efficiency of the firm 6. Income tax paid by a sole trader is shown on the debit side of the Trading Account. on the debit side of the Profit and Loss Account. as deduction from capital in the Balance Sheet. as addition to capital in the Balance Sheet. 7. Outstanding Income is An income An expense A liability An asset 8. Large advertisement expenditure to introduce a new product is Capital Expenditure. Revenue Expenditure. Deferred Revenue Expenditure. None of these. 9. “Salaries and Wages” appearing in Trial Balance is shown : On the Debit Side of Trading A/c On the Debit Side of P & L A/c On the Asset Side of Balance Sheet On the Liabilities Side of Balance Sheet 10. Expenditure of recurring nature are Preliminary Revenue Capital Deferred revenue Loading … Question 1 of 10
