When the owner makes drawing from the business, a debit entry will be made in drawings account. This will:
Increase the amount owed by owner
Decrease the amount owed by owner
There will be no change
Increase the owner's profit
Sale of a fixed asset comes under:
Capital receipt
Revenue receipt
Capital expenditure
Revenue expenditure
According to business entity concept, a capital account will show:
Credit balance
Debit balance
Both debit and credit balance
No balance
Which principle is used to record immaterial item?
Principle of materiality
Matching principle
Historical principle
Revenue recognition principle
Business entity concept is most suitable for:
Sole ownership organization
Partnership organization
Company
HUF
This principle applies to items of very low value.
Materiality
Going concern
Entity
Historical cost
A firm spends Rs.5000/- for purchasing a good which is left at the end of year. This is a:
Expenditure
Expenses
Sales
Profit
Money is a recognized unit of measure. Which of the statement is correct regarding money?
It is a modern way of valuing transactions
It is a traditional way of valuing transactions
It is a scientific way of valuing transactions
It is an ignorant way of valuing transactions
Legal cost incurred while purchasing a fixed asset comes under:
Revenue expense
Capital expenses
The income arising in a normal trading activities is known as:
