Basic accounting terms-1

The amount invested by the proprietor in a business is called

• Capital

• Cash

• Revenues

• Loan

Sale is recognised as a revenue

• When the contract for sale is entered into

• At the point of sale

• After the expiry of credit period allowed to debtors

• After the money collected from the customer

Amount of debts irrecoverable from the debtors are termed as (a)  

Which of the following is not a long term liability

• Creditors

• Term loan

• Debentures

• Bank loan

Fall in the value of an asset due to its use is termed as (a)  

Excess of income over its related expenses which arises from its normal business activity is called as

• Gain

• Profit

• Revenue

• Loss

Debtors, bills receivable, bank balance are examples of (a)  

Amount at which an asset appears in the books of account is (a)  

A person to whom a firm owes money e for purchase of goods is a (a)  

Purchase refers to purchase of......

• Goods for resale

• stationary for office use

• Assets for the factory

• None of the above