Accounting - Practice Test

[#2116] Which of the following is a personal account:

(A) Investment

(B) Commission

(C) Outstanding salary

(D) Share premium

(E) Pre-paid Salary Account

(F) Drawings Account

(G) Outstanding Rent Account

(H) All of the above

Correct Answer

(C) Outstanding salary
(H) All of the above

[#2117] Which of the following loan commitments are within the scope of IFRS-9?

(A) Loan commitments that can be settled net in cash or by delivering or issuing another financial instrument

(B) Commitment to provide a loan at a below market interest rate

(C) Loan commitment that the entity designates as financial liabilities at fair value through profit or loss

(D) All of the above

Correct Answer

(D) All of the above

[#2118] Which of the following receipts is of revenue nature?

(A) Amount realised from sale of investments

(B) Dividend received on investments

(C) Amount borrowed from a bank

(D) Compensation received from municipality corporation on acquisition of land for the construction of road

Correct Answer

(B) Dividend received on investments

[#2119] Profit prior to incorporation can be used:

(A) In writing off goodwill

(B) In making good the capital losses

(C) In both A and B

(D) None of the above

Correct Answer

(C) In both A and B

[#2120] Revenue is generally recognised as being earned at the point of time, when:

(A) Sale is effected

(B) Profit and loss account is prepared

(C) Production is completed

(D) Cash is received

Correct Answer

(A) Sale is effected

Accounting - Study Mode

[#2116] Which of the following is a personal account:

Correct Answer

[#2117] Which of the following loan commitments are within the scope of IFRS-9?

Correct Answer

[#2118] Which of the following receipts is of revenue nature?

Correct Answer

[#2119] Profit prior to incorporation can be used:

Correct Answer

[#2120] Revenue is generally recognised as being earned at the point of time, when:

Correct Answer