The apportionment of the cost of a fixed asset to the profit and loss account is termed?
Expense
Depreciation
Loss
Appreciation
Correct answer is B
No explanation has been provided for this answer.
The claim of a proprietor of a business entity on its assets is................
Liabilities
Capital
Drawings
Funds
Correct answer is C
Drawings is the money withdrawn from a business by its owners for personal use. A drawing account is used primarily for businesses that are taxed as sole proprietorships or partnerships.
A document forwarded to a supplier showing unsatisfactory goods is................................
Debit note
Credit note
Invoice
Waybill
Correct answer is A
No explanation has been provided for this answer.
Credit notes received are source documents for........
Returns inwards journal
Returns outwards journal
Purchase journal
Sales journal
Correct answer is A
Credit notes are given to a buyer/customer by the seller for goods returned. Since the goods are returned to the seller, it is recorded in the returns inwards journal.
Which of the following transactions is a revenue expenditure?
Purchase of plant
Purchase of a new engine
Construction of office wall
Purchase of fuel for vehicle
Correct answer is D
Revenue expenditures are short-term expenses used in the current period or typically within one year. It includes the expenses required to meet the ongoing operational costs of running a business. Option D is correct.