Expenses

Q.

What is the difference between income and expenditure account?

Q.

What is an outstanding salary?

Q.

What Are the 4 Types of Adjusting Entries?

Q.

Which of the following accounts is an Expense?

1. Stock purchased for resale

2. Electricity bill paid

3. Loan taken from bank

4. Machinery purchased for production

Q.

Which of the following is incorrect with regard to expenses?

1. Expense is the money spent or cost incurred which is an entity's effort to generate revenue

2. Expenses represent the cost of doing business

3. Revenue minus expenses calculate the net profit for the business for a given period

4. Expenses are always incurred in cash. There are no expenses which are outstanding

Q.

Which of the following transactions shall be regarded as an Expense for the company?

1. Donation to a political party

2. Payment of diwali bonus to employees

3. Repayment of principal amount of loan to bank

4. Director has bought an expensive watch worth Rs 1, 00, 000 from the cash available in the company

Q.

Which of the following are the expenses of an organisation?

1. Purchase of machinery

2. Purchase of goods for sale

3. Paying the electricity bill

4. Introducing capital in the business

Q.

Mohan has a Recurring Deposit Account in a bank for $2$ yr at $6\%$ per annum simple interest. If he gets $₹1200$ as interest at the time of maturity, then find

1. the monthly instalment.
2. the amount of maturity.