Business Administration (M.Sc)

Q: Heavy expenditure on advertisement of a new product is a?

(a) :  Capital expenditure
(b) :  Revenue expenditure
(c) :  Deferred revenue expenditure
(d) :  All of these
(e) :  none
Answer:  Deferred revenue expenditure
Explanation:  

Q: Identify which of the normal balances (in parentheses) assigned to the following accounts is incorrect?

(a) :  Office supplies (Debit)
(b) :  Cash (Debit)
(c) :  Wages payable (Credit)
(d) :  Free earned (Debit)
(e) :  none
Answer:  Cash (Debit)
Explanation:  

Q: The discount account is a?

(a) :  Personal account
(b) :  Real account
(c) :  Nominal account
(d) :  Asset account
(e) :  none
Answer:  Nominal account
Explanation:  

Q: The provision for discount on creditors is often not provided in keeping with the principle of?

(a) :  Materiality
(b) :  Consistency
(c) :  Conservatism
(d) :  Realization
(e) :  none
Answer:  Conservatism
Explanation:  

Q: Which of the following best describes the nature of an asset?

(a) :  Something with a ready market value
(b) :  An economic resource, which will provide some future benefits, owned by a business.
(c) :  The amount of the owner’s investment in a business
(d) :  All of these
(e) :  none
Answer:  An economic resource, which will provide some future benefits, owned by a business.
Explanation:  

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