Final accounts

Which of the following is not capital expenditure?

• Purchase of fixed assets

• Expenditure on the improvement of fixed assets

• depreciation on fixed assets

• expenditure on reconditioning of old fixed assets

What principal is the trading account based on?

• Matching principle

• Dual aspect principle

• Conservatism principle

• Cost concept principle

Cartage outwards is posted in?

• dr of profit and loss

• cr of profit and loss

• liabilities side of the balance sheet

• dr of trading account

Net loss is transferred to?

• dr of profit and loss account

• purchases account

• cr of trading account

• capital account

Rent received is?

• direct expense

• indirect expense

• direct revenue

• indirect revenue

Income statement refers to?

• Trading account

• Profit and loss account

• Trading and P&L account

• balance sheet

Position statement refers to?

• balance sheet

• trading and p&l account

• Profit and loss account

Under liquidity approach assets that are most liquid are written

• at the bottom

• first

Which asset will come first according to the permanence approach?

• cash in hand

• debtors

• goodwill

• bills receivable

Balance sheet is a

• a list of all the accounts in the books of a business

• an account showing trading activities

• an account showing the financial position

• a list of assets and liabilities and capital of a business at a certain date