Changes in Outstanding Expenses

Q.

Calculate Indirect Taxes From The Following Data Calculate Indirect Taxes From The Following Data

Q.

How is short-term provisions for tax treated while computing cash from operations?

Q. Under which line item of the financial statements following items will be shown:
(i) Sales; (ii) Loss on Sale of Vehicle; (iii) Debentures; (iv) Unamortised Loss on Issue of Debentures (to be written off within 12 months of the date of Balance Sheet); (v) Encashable Leave Payable at the Time of Retirement; (vi) Tax Reserve; (vii) Carriage on Purchases of Stock-in-Trade; and (viii) Telephone and Internet Expenses?

Q.

Beginning Income Tax Payable − Ending Income Tax Payable + Income Tax Expense is equal to ___

1. Cash paid to suppliers

2. Cash receipts from customers

3. Intcome tax payments

4. Cash Payments for Prepaid Assets

Q.

Ending Prepaid Rent, Prepaid Insurance etc.+ Expired Rent, Expired Insurance etc. − Beginning Prepaid Rent, Prepaid Insurance etc. is equal to ___

1. Cash paid to suppliers

2. Cash receipts from customers

3. Interest payments

4. Cash Payments for Prepaid Assets

Q.

Beginning Salaries Payable − Ending Salaries Payable + Salaries Expense is equal to___

1. Cash receipts from customers

2. Cash paid to suppliers

3. Cash payments to employees

4. None of these

Q. Prepaid expenses refer to those expenses which have been ___________________.

1. Paid but not paid during the previous accounting period.
2. Paid but not incurred during the current accounting period.
3. Incurred but not incurred during the current accounting period.
4. Incurrent but not paid during the previous accounting period.

Q. Which of the following is not recorded in the Receipts and Payments Account:
W. Outstanding subscription
X. Prepaid insurance premium
Y. Depreciation

1. W and X
2. Y and W
3. Y only
4. All W, X and Y

Q. The tax which is levied temporarily in order to a complete a project is called _________.

1. sales tax
2. expenditure tax
3. capital tax
4. income tax

Q.

Beginning Interest Payable − Ending Interest Payable + Interest Expense is equal to ___

1. Cash receipts from customers

2. Interest payments

3. None of these

4. Cash paid to suppliers

Q. If the insurance premium paid 1, 000 and prepaid insurance 300. The amount of insurance premium shown in Profit and Loss account will be _____.

1. 1, 300
2. 1, 000
3. 300
4. 700

Q. A prepayment of insurance premium will appear in the Balance Sheet and in the Insurance Account respectively as.

1. An asset and a debit balance
2. A liability and a debit balance
3. An asset and a credit balance
4. None of the above

Q. Pass journal entry for transferring interest on loan.

Q. If the rent of one month is still to be paid, the adjustment entry will be_________________________.

1. debit outstanding rent account and credit rent account
2. debit rent account and credit profit and loss account
3. debit profit and loss account and credit rent account
4. debit rent account and credit outstanding rent account

Q. Give word / term or phrase for each of the following statement.

Payment of the bill before due date.

Q. is it necessary to calculate interest on debentures if there is no information regarding this in cash flow statement but debentures appears in balance sheet

Q. __________ is a non-recurring expense.

1. Rent of the godown.
2. Warehouse insurance charges.
3. Transit insurance and freight.
4. Salesman's salary and commission.

Q. Income tax paid by a sole proprietor on his business income should be ____________.

1. debited to trading account
2. debited to profit and loss account
3. none of the above
4. deducted from capital account in the balance sheet

Q. A company has bought patents. Which of the following methods is most suitable for providing depreciation on them?

1. SLM
2. Sum of year digits
3. WDV
4. Any of the above

Q. Insurance premium paid on the life of proprietor himself is an example of _____________.

1. Deferred revenue expenditure
2. None of the above
3. Capital expenditure
4. Revenue expenditure