Practice Test

Q1) A list of balances of all the accounts in ledger is called ________. Show Answer

Q2) Opening stock is entered in a Trading A/c on the ___ side. Show Answer

Q3) Drawings account is closed by transferring the balance to the _______ account. Show Answer

Q4) External liabilities plus capital is ________. Show Answer

Q5) Outstanding expenses is a ________ account. Show Answer

Q6) Depreciation is always charged on ________ assets. Show Answer

Q7) Pre-received income is shown on __ side of balance sheet. Show Answer

Q8) Royalty on production is a _________ expenses. Show Answer

Q9) Interest on investment is _______ of business concern. Show Answer

Q10) All items of income are shown in the credit side of the ______ account. Show Answer

Q11) A provision made for debts irrecoverable from the debtors is called _______. Show Answer

Q12) Profit and loss A/c is _________ account. Show Answer

Q13) Income received in advance is shown on the ________ side of balance sheet. Show Answer

Q14) Return outward is deducted from ________. Show Answer

Q15) Trading account is prepared on the basis of ____ expenses. Show Answer

Q16) All indirect expenses are debited to _________ account. Show Answer

Q17) Trading A/c is a __________ A/c. Show Answer

Q18) Net Sales are shown on credit side of _______. Show Answer

Q19) Abnormal losses are shown on ________. Show Answer

Q20) _____are intangible assets but do not have exchange value. Show Answer

Q21) Final account are prepared on the basis of Trial Balance Show Answer

Q22) Trading Account is a part of Profit & Loss Account Show Answer

Q23) Profit Loss Account is prepared to find out Gross Profit or Gross Loss Show Answer

Q24) Gross Profit or Gross Loss is transferred to Balance Sheet. Show Answer

Q25) An amount of a Net Profit is added to the capital. Show Answer

Q26) All indirect expenses are debited to trading account. Show Answer

Q27) Balance Sheet is a statement and not an account. Show Answer

Q28) Capital account is a personal account Show Answer

Q29) Amount of prepaid expenses appears on asset side. Show Answer

Q30) Bank Overdraft is a liability of business concern. Show Answer

Q31) In every adjustment there are at least three effect. Show Answer

Q32) Every item of a Trial Balance has only effect one while preparing final accounts. Show Answer

Q33) Closing stock is valued at cost price or market price which is lower. Show Answer

Q34) Income due but not received as a liability. Show Answer

Q35) Capital is an asset. Show Answer

Q36) Depreciation increase the value of an asset. Show Answer

Q37) Goodwill is not a fictitious asset. Show Answer

Q38) Carriage outward and return outward are one and the same concept. Show Answer

Q39) Credit balance of profit and loss account shows net profit. Show Answer

Q40) Reserve for bad debts are created by debiting profit & loss Account. Show Answer

Q41) Balance sheet is a statement as well as an account. Show Answer

Q42) Depreciation cannot be provided in a financial year when it suffers loss. Show Answer

Q43) A Trial balance is as part of Final account. Show Answer

Q44) Capital is treated as an internal liability. Show Answer

Q45) Debit balance of Trading A/c indicates Gross Profit. Show Answer

Q46) Profit & Loss A/c for any year will include all expenses paid during the year. Show Answer

Q47) Interest on capital is credited to Profit & Loss A/c. Show Answer

Q48) Outstanding expenses is usually added to related expense in final accounts. Show Answer

Q49) Income received in advance is added to related income item in the final accounts. Show Answer

Q50) Debit balance of Profit & Loss A/c show net loss. Show Answer

Q51) The amount of carriage inwards is debited to Profit & loss Account. Show Answer

Q52) The creation of a provision for bad debts increases the net profit. Show Answer

Q53) All indirect expenses are transferred to Profit & loss Account. Show Answer

Q54) Provision for Discount on Creditors A/c shows a credit balance. Show Answer

Q55) The provision of discount on debtors is computed only after the provision for bad debts has been computed. Show Answer

Q56) Prepaid expenses is a liability . Show Answer

Q57) Usually capital account shows a credit balance. Show Answer

Q58) Closing stock is always valued at cost or market price whichever is higher. Show Answer

Q59) Net loss is deducted from the capital. Show Answer

Q60) Drawings are always deducted from capital. Show Answer

Q61) Transactions relating to goods are known as -------- transaction. Show Answer

Q62) The purpose of the Trading Account is to find out ---------- or ---------- Show Answer

Q63) (Net sales) - (cost of goods sold)= ( ---------) . Show Answer

Q64) The stock at the beginning of the year is known as ----------. Show Answer

Q65) Closing stock of last year is brought froward as the opening stock for the ----- year. Show Answer

Q66) Work in progress is also known as -------------. Show Answer

Q67) Any goods returned to suppliers is to be deducted to get --------------- . Show Answer

Q68) Carriage inward means carriage on --------- . Show Answer

Q69) The excess of debit side of Trading Account over the credit side is known as ----------------- . Show Answer

Q70) Rent received from sub - tenant is ------ to Profit and Loss Account. Show Answer

Q71) For passing closing entries all Expenses Accounts are --------- and Income Accounts are ------------- . Show Answer

Q72) Balance Sheet is a part of -------- Accounts, but it is not an ------------. Show Answer

Q73) The left hand side of the Balance Sheet is known as -------- while right hand side is known as -----------. Show Answer

Q74) Assets which are not represented by an tangible things are called -------- assets. Show Answer

Q75) Unforeseen or unexpected liabilities are known as -------- . Show Answer

Q76) The transactions which are not included in the Trial Balance to be included in the Final Account by passing ---------- . entries. Show Answer

Q77) The expenses which are unexpired are to be carried forward to the next year are known as ---------- expenses. Show Answer

Q78) Wear and Tear on fixed assets is called as ---------- . Show Answer

Q79) Commission receivable will be shown in the ---------- on the -------- side. Show Answer

Q80) Reserve for discount on debtors will be calculated on ---------- debtors. Show Answer

Q81) Irrecoverable debts are called -------- . Show Answer

Q82) When date of drawing is not known interest on drawing is calculated for -------------- period. Show Answer

Q83) When goods are withdrawn by proprietor for his personal use ------- Account is credited. Show Answer

Q84) Interest on capital is an ------ to the business. Show Answer

Q85) Unpaid expenses are shown on the ---------- side of the Balance Sheet. Show Answer

Q86) Capital expenses are shown in -------- and revenue expenses are shown in ------------- Show Answer

Q87) ------------- Account is prepared to find out the net profit of the business. Show Answer

Q88) The balance of the Trading Account is transferred to ----------Account. Show Answer

Q89) --------------- is the statement of assets and liabilities. Show Answer

Q90) Interest ------------ is an expenses and hence should be shown on -------- side of --------- Account while interest ----- is income and hence should be shown on -------- side of -------- Account. Show Answer

Q91) Capital of proprietor ------- when business makes loss. Show Answer

Q92) Closing stock is valued at ------------ price or ------- price, whichever is -------- . Show Answer

Q93) Discount or reserve on creditors shows --------- balance. Show Answer

Q94) Creating reserve for discount on creditors is against the principle of ------------- . Show Answer

Q95) Capital means excess of assets over ------ . Show Answer

Q96) Discount earned is transferred to Credit side of --------. Show Answer

Q97) --------- is a statement which shows the financial position of business on a specified date. Show Answer

Q98) Dividend received is transferred to credit side of ---------- A/c. Show Answer

Q99) Debit balane of Trading Account means --------- . Show Answer

Q100) Carriage inwards debited to ------- A/c. Show Answer

Q101) Bad debts reserve account always shows ---------- balance. Show Answer

Q102) Excess of credit over debit in Profit & loss A/c indicates ------------- . Show Answer

Q103) Trial balance is a proof of ------- accurarcy. Show Answer

Q104) Outstanding expenses is a --------- account. Show Answer

Q105) Depreciation is always charged in ---------- assets. Show Answer

Q106) Pre - received income is shown on --------- side of balance sheet. Show Answer

Q107) To know the financial position of business Trial Balance is prepared. Show Answer

Q108) Cost of goods sold means the purchase cost of goods sold. Show Answer

Q109) Trade expenses are always debited to Trading Account. Show Answer

Q110) Excise duty payable to municipality. Show Answer

Q111) Goods distributed as a free sample is debited to Trading A/c. Show Answer

Q112) Adjustments entries are passed to transfer the balance of various accounts to the Trading and Profit & Loss Account. Show Answer

Q113) Selling and distribution expenses are debited to Profit and Loss Account. Show Answer

Q114) Gross loss is transferred from the debit side of Trading Account to the credit side of Profit & Loss Account. Show Answer

Q115) Provident fund contribution is an income for the business. Show Answer

Q116) Expenses Accounts are debited and Income Accounts are credited to record the closing entries. Show Answer

Q117) All type of purchase inventories are debited to the Trading Account. Show Answer

Q118) Personal traveling expenses of proprietor is debited to Profit & Loss A/c. Show Answer

Q119) The life of current assets is not more than one year. Show Answer

Q120) Patent right is a factitious asset. Show Answer

Q121) Contingent liabilities are shown on the left hand side of the Balance Sheet. Show Answer

Q122) The bad debts which will take place in future is known as further bad debts. Show Answer

Q123) Reserve for bad debts means debts reduce in future. Show Answer

Q124) Entry for reserve for discount on debtors is passed before passing the entry for reserve for bad debts. Show Answer

Q125) Unexpired expenses are debited in Profit and Loss Account. Show Answer

Q126) Direct expenses are charged to Profit and Loss Account. Show Answer

Q127) Liabilities shows debit balances while assets show credit balances. Show Answer

Q128) Every adjustment is shown at two places in the Final Account. Show Answer

Q129) Carriage inwards is debited in Trading A/c while Carriage Outwards is debited to Profit and Loss Account. Show Answer

Q130) If Trial Balance agrees, then the Balance Sheet must tally. Show Answer

Q131) All the accounts with the credit balances in the Trial Balance represent liabilities. Show Answer

Q132) To get the Net Profit of current year, outstanding expenses should not be adjusted, as they are not paid during the year. Show Answer

Q133) Income due but not received is the liability. Show Answer

Q134) Royalty on production is an expenses for the business while royalty on sales is an income. Show Answer

Q135) If closing stock will be valued at higher price, then profit will increase. Show Answer

Q136) Under permanency order, the assets which are more readily convertible into cash come first. Show Answer

Q137) Outstanding wages is a Personal A/c. Show Answer

Q138) Return inward is deducted from total sales. Show Answer