Which of the following is a capital expenditure?
Extension of building
Repairs of generator
Purchase of stock
Purchase of stationery
Correct answer is A
No explanation has been provided for this answer.
The two fundamental books of accounting are
Return inwards and outwards
Journal and ledger
Discounts allowed and received
Credit note and debit note
Correct answer is B
No explanation has been provided for this answer.
A loss made on the disposal of a fixed assets is debited to
Sales account
Purchases account
Profit and loss account
Capital account
Correct answer is C
Loss on sale; Debit cash for the amount received, debit all accumulated depreciation, debit the loss on sale of asset account, and credit the fixed asset
Which of the following is not an item in the profit and loss account?
Drawings
Interest
Salaries
Bad debts
Correct answer is A
Drawings account is one of the temporary accounts and is closed at the end of accounting period. But this account is not closed in the income statement i.e. trading account or profit and loss account rather it is closed in the capital account of the owner which is reported in the statement of financial position
Which of the following is not a revenue to a local government?
Fines
Licenses
Personal income tax
Tenement rates
Correct answer is C
State and local governments collect tax revenues from three primary sources: income, sales, and property taxes. Income and sales taxes make up the majority of combined state tax revenue, while property taxes are the largest source of tax revenue for local governments, including school districts.