1431. Which of the following correct adjusting entry is to be passed for accrued income :
A. Income account XX to income receivable in advance XX
B. Accrued income account XX Dr to income account XX Cr *
C. Prepaid income account XX to income account XX
D. Income received in advance account XX to income account XX
1432. The outstanding income or accrued income will appears in the balance sheet as :
A. A liability
B. An income
C. An expense
D. An asset *
1433. Income received in advance but not earned is called :
A. Unearned income *
B. Prepaid revenue
C. Outstanding income
D. Accrued income
1434. The credit balance of the income received in advance wil be shown on the balance sheet as :
A. An asset
B. An expense
C. A liability *
D. An income
1435. Which of the following correct adjusting entry is to be pased for income received in advance during the current period :
A. Income received in advance account XX to income account XX
B. Income account XX Dr to income received in advance account XX *
C. Accrued income account XX to income account XX
D. Income account XX to accrued income account XX
1436. The gradual and permanent decrease in the value of an asset from my cause ; is known as :
A. Reduction of assets
B. Revaluation of assets
C. Realization of assets
D. Depreciation *
1437. Which of the following correct adjusting entry is passed at the end of the year on account of depreciaton :
A. Depreciation account XX Dr to asset account XX Cr *
B. Asset account XX to depreciation account XX
C. Asset account XX depreciation account XX to asset account XX
D. None of these entries
1438. From the business point of view, interest on capital is regarded as :
A. An income
B. An expense *
C. An asset
D. A profit
1439. A the end of the year when interest on capital is recorded , which of the following :
A. Capital account XX to interest on capital account XX
B. Capital account XX to profit and loss account XX
C. Interest on capital account XX Dr to capital account XX Cr *
D. Profit and loss account XX to interest as capital account XX
1440. From the business point of view, interest and drawings is :
A. An asset of the business
B. An expense to the business
C. A liability of the business
D. A revenue to the business *