1021. Prepaid expenses appearing in a trial balance will figure in the :

A. Balance sheet *
B. Profit and loss account
C. Profit and loss account and balance sheet
D. Prepaid expenses account

1022. Sale of old furniture on credit will appear in the :

A. Sales day book
B. Cash book
C. Journal *
D. Debtors ledger

1023. The abundance of current resources over current liabilities is called :

A. Net worth
B. Working capital *
C. Net tangible worth
D. Turnover

1024. Depreciation is the process of :

A. Allocation of costs *
B. Valuation of assets
C. Use of assets
D. None of the above

1025. In an integrated costing system, most the data relevant to cost accounting comes from the :

A. Cost accounting system
B. Financial accounting system *
C. Stores accounting system
D. Sales and distribution system

1026. Which method of costing is used by sugar mills ?

A. Unit or output costing
B. Job costing
C. Batch costing *
D. None of them

1027. Premium on redemption of debentures is accounted for in the :

A. Personal account *
B. Real account
C. Nominal account
D. Assets account

1028. After debentures are redeemed , the balance in the sinking fund account is transferred to :

A. Capital reserve
B. General reserve *
C. Profit and loss account
D. Secret reserve

1029. To the extent redemption of preference shares takes place out of profits , an equal amount has to be transferred to :

A. Development rebate reserve
B. Capital redemption reserve *
C. General reserve
D. Share premium account

1030. When shares are forfeited, the share capital account is debited by :

A. Calls-in-arrears
B. Called up amount *
C. Paid up amount
D. Face value of shares