ounting terms XI

M eas ,,.,, I • k
======== ts that have no p hy sical existence
but, possess a va ue 1s nown as ,
1 . The Jong term asse
__ -
..,,.- A) current asse ts
B) Fixed assets
J41ntangible assets
D) Investmen ts
'fy converted into cash within a short period (i.e., 1 yea r or 1 • ~
2. The assets that can be eas1 ess is known
as,
_p:rcurrent assets
B) Fixed assets
C) In tangible assets
D) Investments

3.Copyrights, Patents and Trademarks are,

A) Current assets
B) Fixed assets
~ Intangible assets
D) Investments

4. The debts which are to be repaid within a short period {a y~a r or less) are referred to as,

- - -- f i Current Liabilities
B) Fixed liabilities -
C) Contingent liabilities
- - - D) All of the above
-
5.Net profit is computed in the:

/4Profit and loss account

B) Balance sheet
C) Trial balance
D) Trading account

6. Which of these best explains fixed assets?

__ A) Are bought to be used in the business

B) Are expensive items bought for the business
--- C) Are items which will not wear out quickly
- --- _,,.ff}" Are of long life and are not purchased specifically for resale

- - 7. Cash discount is -----

- - ,,.{Which is allowed at the time of making the payment

b) allowed at the time of sale of goods

-
--

___
---
c) received at the time of pu h
----------- re ases of goods
 - ----- - -
~
- - ---- - l1 ai:;v 1 "'v . _J
d)received both at the time o f m aking pa ym en t
~ ~,,,---

---~
....__
/ s.Which of the following is capital expenditure?

a) W ages

--~ f tages pa id for building co nstr uction

-~
c) Repa ir expenses of building
~
d) Adv ertisement expenses
~
9. A person who owes money to the firm is called _____
~

- - - - - _ffeebt or _

----
----
b) creditor

---
c) supp lier

d) none of these
,

10.Purchases refers to the buying of--------

a) Stat ionery for office use

' b) Assets for the factory

-- ~ ods of resale

d) Investment
)