Multiple-choice questions on accounting concepts like promoters, non-trading concerns, capital, depreciation, and single-entry systems.

Here are the answers to the multiple-choice questions: 1) The people who form a company are called: B. Promoters Explanation:* Promoters are individuals who undertake the preliminary steps to form a company. 2) In non-trading concerns, subscription received in advance is considered as: C. Liability Explanation:* Subscription received in advance represents money received for services yet to be provided, creating an obligation for the organization. 3) Opening capital is ascertained by preparing: B. Opening statement of affairs Explanation:* In the single-entry system, the opening capital is determined by preparing an opening statement of affairs, which is similar to a balance sheet. 4) Gradual decrease in value of a fixed asset due to its use in business is called: B. Depreciation Explanation:* Depreciation is the accounting process of allocating the cost of a tangible asset over its useful life. 5) Income of a non-trading concern is generated from: B. Receipts Explanation:* Non-trading concerns primarily generate income from various receipts like subscriptions, donations, and grants, rather than sales. 6) Which of the following is not prepared under single entry system? C. Trial balance Explanation:* A trial balance requires complete double-entry records, which are not maintained under the single-entry system. 7) The assets which have physical form are called: A. Tangible assets Explanation:* Tangible assets are physical assets such as land, buildings, and machinery. 8) Un-appropriated profits are shown as: B. Profit and loss account credit balance Explanation:* Un-appropriated profits represent accumulated profits not yet distributed or transferred, typically shown as a credit balance in the Profit and Loss Appropriation Account or Retained Earnings. 9) Non-trading concerns prepare: C. Income and expenditure account Explanation:* Non-trading concerns prepare an Income and Expenditure Account to determine their surplus or deficit for a period. 10) Patents, copyrights, goodwill are: B. Intangible assets Explanation:* These are assets that lack physical substance but have value due to legal rights or economic benefits. 11) Debenture holders are Creditors of company. A. Creditors Explanation:* Debenture holders lend money to the company and are therefore its creditors. 12) Depreciation is considered as a/an Expense for business. A. Expense Explanation:* Depreciation is an operating expense that reduces the value of an asset and is charged against revenue. 13) Nature of consignee account is: A. Personal account Explanation:* A consignee is a person or entity, so their account is classified as a personal account. 14) For a business, interest on capital is a/an: C. Expense Explanation:* From the business's perspective, interest paid on the owner's capital is an expense.