Que. 1 : Q1) Capital Expenditure increases the value of a _______ asset

   1.  a) non current

   2.  b) current

   3.  c) both of the above


Que. 2 : Q2) A Fall in the percentage of Gross Profit to sales is mainly due to

   1.  a) Either by Higher Expenses

   2.  b) or by Lower Incomes

   3.  c) by both

   4.  d) all of above

Que. 3 : Q3) International Financial Reporting Standards (IFRS) has been prepared by __________.

   1.  a) A. IRDA

   2.  b) B. ICAI

   3.  c) C. IASC

   4.  d) D. IASB

Que. 4 : Q4) The expenses which help to generate income over a period of years are called

   1.  a) Revenue expenditure

   2.  b) Deferred revenue expenditure

   3.  c) Deferred capital expenditure

   4.  d) Capital expenditure

Que. 5 : Q5) Depreciation expense in the declining balance method is calculated by

   1.  a) Depreciation Rate multiplied by book value at the begening of the year

   2.  b) Depreciation Rate plus book value at the end of the year

   3.  c) Depreciation Rate divided by book value at the beginning of the year

   4.  d) Depreciation Rate times accumulated depreciation at year end