Practice Test

Q1) __________ is used by business entities for keeping records of their monetary or financial transactions. Show Answer

Q2) Accounting is "the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of a financial character and interpreting the results thereof". This definition is given by - Show Answer

Q3) Which of the following is attribute of accounting? Show Answer

Q4) __________ is the language of business and used to communicate financial and other information to different interested parties like creditors, investors, researchers, governments etc. Show Answer

Q5) Accounting is -
1. An art
2. A science
Select the correct answer from the options given below -
Show Answer

Q6) Which of these is not a function of Financial Accounting? Show Answer

Q7) Accounting involves -
(I) Recording
(II) Classifying
(III) Summarizing
Select the correct answer from options given below -
Show Answer

Q8) Systematically writing down the transactions and events in account books soon after their occurrence is known as - Show Answer

Q9) The process of grouping transactions or entries of the same type at one place is known as - Show Answer

Q10) Which of the following involves the preparation of reports and statements from the classified data (ledger) understandable and useful to management and other interested parties? Show Answer

Q11) Accounting records only those transactions and events which are of -
X. Social character
Y. Financial character
Select the correct answer from the options given below -
Show Answer

Q12) The statements prepared by the summarizing process is known as _____ which will show the profit or loss made by the business over a period of time and the total capital employed in the business. Show Answer

Q13) Which of the following is/are the branch of accounting?
(P) Financial Accounting
(Q) Cost Accounting
(R) Management Accounting
Select the correct answer-
Show Answer

Q14) Which of the following is/are not the branch of accounting? Show Answer

Q15) Which of the following is the branch of accounting?
(I) Human Resources Accounting
(II) Social Accounting
(III) Security Accounting
The correct answer is -
Show Answer

Q16) Which of the following is/are the main functions of accounting? Show Answer

Q17) Which of the following is/are the main functions of accounting?
1. Allowing credit to customers
2. Ascertaining the operational profit or loss
3. Providing leadership to accounting staff
Select the correct answer from options given below -
Show Answer

Q18) Which of the following is/are the advantages of accounting?
(i) Maintenance of legal records
(ii) Preparation of financial statements
(iii) Comparison of results
The correct answer is -
Show Answer

Q19) Which of the following is/are the advantages of accounting? Show Answer

Q20) Which of the following is/are NOT the advantages of accounting? Show Answer

Q21) Which of the following is/are NOT the advantages of accounting? Show Answer

Q22) Which of the following is/are the limitations of accounting? Show Answer

Q23) Which of the following is/are the limitations of accounting? Show Answer

Q24) Which of the following is/are not the limitations of accounting? Show Answer

Q25) __________ is mainly concerned with recording of financial data relating to the business operations in a significant and orderly manner. Show Answer

Q26) __________ covers procedural aspects of accounting work and includes record keeping function. Show Answer

Q27) Book-keeping is concerned with the ____ of transactions while Accounting is concerned with the __________ of the recorded transactions. Show Answer

Q28) Which among the following constitutes the base for accounting? Show Answer

Q29) Financial statement do not form part of book keeping. Show Answer

Q30) Financial position of the business is ascertained on the basis of -
A. Book-keeping
B. Accounting reports
The correct answer is -
Show Answer

Q31) __________ is a system in which accounting entries are made only when cash is received or paid. Show Answer

Q32) _____ is a system in which transactions are recorded on the basis of amounts having become due for payment or receipt. Show Answer

Q33) Which of the following has no relevance whether the receipts pertain to previous period or future period? Show Answer

Q34) __________ is incompatible with the matching principle of income determination. Show Answer

Q35) __________ attempt to record the financial effects of the transactions, events, and circumstances of an enterprise in the period in which they occur rather than recording them in period(s) in which cash is received or paid by the enterprise. Show Answer

Q36) Cash system of accounting is suitable in which of the following cases? Show Answer

Q37) Doctors, lawyers, firms of chartered accountants/Company Secretaries generally follows _____ of accounting Show Answer

Q38) Which of the following is/are the essential features of accrual basis of accounting? Show Answer

Q39) Which of the following is/are the essential features of accrual basis of accounting?
(I) Revenue is recognized only when cash is received.
(II) Costs are matched against revenues on the basis of relevant time period to determine periodic income.
(III) Costs which are not charged to in¬come are carried forward and are kept under continuous review.
(IV) Receipts or incomes are recorded as and when cash is received or becomes due on the other hand payments are recorded only when cash is actually paid.
The correct answer is -
Show Answer

Q40) Accounting is of primary importance to the - Show Answer

Q41) Which of the following is/are external users of accounting information's? Show Answer

Q42) Which of the following would be considered as external users of accounting information’s? Show Answer

Q43) Select the odd one in relation to users of accounting information’s. Show Answer

Q44) Regulatory Agencies interested as users of accounting information’s includes - Show Answer

Q45) Which of the following is characteristic of accounting information?
P. Relevance
Q. Reliability
R. Comparability
Select the correct answer from the options given below -
Show Answer

Q46) Which of the following is not characteristic of accounting information? Show Answer

Q47) Which of the following is/are can be treated as role of accountant? Show Answer

Q48) Which of the following is/are cannot be treated as role of accountant? Show Answer

Q49) Which of the following is/are can be treated as role of accountant? Show Answer

Q50) __________ refer to the specific accounting principles and the methods of applying those principles adopted by the enterprise in the preparation and presentation of financial statements. Show Answer

Q51) Accounting policies followed by organizations - Show Answer

Q52) When a change in accounting policy is justified? Show Answer

Q53) It is essential to standardize the accounting principles and policies in order to ensure - Show Answer

Q54) A specific accounting policy refers to - Show Answer

Q55) The determination of the amount of bad debts is an accounting - Show Answer

Q56) Generally, which of the following measurement bases are usually accepted in accounting parlance? Show Answer

Q57) Book value & Market value of machinery on 31.3.2015 was Rs. 1,00,000 & Rs. 1,10,000 respectively. As on 31.3.2019, if the company values the machinery at Rs. 1,10,000, which of the following valuation principle is being followed - Show Answer

Q58) The current cost of the machinery is - Show Answer

Q59) The present value of machinery is - Show Answer

Q60) The historical cost of machinery is - Show Answer

Q61) The realizable value of machinery is - Show Answer

Q62) Property, plant and equipment are conventionally presented in the balance sheet at - Show Answer

Q63) All accounts are classified into - Show Answer

Q64) Accounts recording transactions with a person or group of persons are known - Show Answer

Q65) Personal accounts are of the following types. Show Answer

Q66) An account recording transactions with an individual human being is termed as a - Show Answer

Q67) Accounts relating to properties or assets are known as - Show Answer

Q68) An account recording financial transactions with an artificial person created by law or otherwise are termed as - Show Answer

Q69) Real accounts can be further classified into - Show Answer

Q70) Accounts which represent a certain person or group of persons are termed as - Show Answer

Q71) The process of balancing of an account involves equalization of both sides of the account. If the debit side of an account exceeds the credit side, the difference is put on the credit side. The said balance is -
(i) A debit balance
(ii) A credit balance
(iii) An expenditure or an asset
(iv) An income or a liability
Select the correct answer from the options given below -
Show Answer

Q72) Which of the following types of accounts represent assets and properties which can be seen, touched, felt, measured, purchased and sold? Show Answer

Q73) Accounts relating to income, revenue, gain expenses and losses are termed as: Show Answer

Q74) __________ accounts represent assets and properties which cannot be seen, touched or felt but they can be measured in terms of money. Show Answer

Q75) The rule for nominal accounts is - Show Answer

Q76) The rule for personal accounts is - Show Answer

Q77) The rule for real accounts is - Show Answer

Q78) Goodwill accounts, patents account, trademarks account, copyrights account are examples of - Show Answer

Q79) Provision for doubtful debts account, stock reserve account etc. are - Show Answer

Q80) Trading account is a - Show Answer

Q81) Outstanding wages is a - Show Answer

Q82) Which of the following account is tangible real account? Show Answer

Q83) Which of the following account is the odd one out? Show Answer

Q84) At the end of the accounting year all the nominal accounts of the ledger book are - Show Answer

Q85) Which of the following are current assets of a business?
(i) Income received in advance
(ii) Stock
(iii) Debtors
(iv) Prepaid expenses
(v) Accrued income
Select the correct answer from the options given below -
Show Answer

Q86) There are _____ systems of keeping records. Show Answer

Q87) Which system of accounts recognizes the fact that every transaction has two aspects and records both aspects of each and every transaction? Show Answer

Q88) In double entry system of book-keeping every business transaction affects: Show Answer

Q89) As per the provisions of the Companies Act, 2013, companies must maintain their accounts under - Show Answer

Q90) Which of the following is/are merit of double entry system? Show Answer

Q91) Which of the following accounting equation is correct? Show Answer

Q92) If an individual asset is increased, there will be a corresponding - Show Answer

Q93) Which of the following equation is correct? Show Answer

Q94) Which of the financial statement represents the accounting equation? Show Answer

Q95) Difference between assets and outsiders liability is - Show Answer

Q96) A businessman purchased goods for Rs. 25,00,000 and sold 80% of such goods during the accounting year ended 31st March, 2019. The market value of the remaining goods was Rs. 4,00,000. He valued the closing stock at cost. He violated the concept of - Show Answer

Q97) According to which concept, the owner of an enterprise pays the ‘interest on drawings’? Show Answer

Q98) Mr. Ashok buys clothing of Rs. 50,000 paying cash Rs. 20,000. What is the amount of expense as per the accrual concept? Show Answer

Q99) Capital = Rs. 1,00,000, Outsiders liability = Rs. 2,50,000, Total assets = ? Show Answer

Q100) Fixed assets = Rs. 5,50,000, Current assets = Rs. 2,25,000, Current liabilities = Rs. 1,50,000, Bank Loan = Rs. 1,75,000. Capital = ? Show Answer

Q101) Current Assets - Current liabilities = ? Show Answer

Q102) On 1.1.2019, CS N. S. Zad paid rent of Rs. 25,000 for Zads Professional Academy. This can be classified as - Show Answer

Q103) Mr. Bhandari purchased a car for Rs. 50,000, making a down payment of Rs. 10,000 and signing a Rs. 40,000 bill payable due in 60 days. As a result of this transaction Show Answer

Q104) Accounting policy for inventories of X Ltd. states that inventories are valued at the lower of cost or net realizable value. Which accounting principle in followed in adopting the above policy? Show Answer

Q105) On 31.3.2019 after sale of goods Rs. 2,000, Neelam is left with the closing inventory of Rs. 10,000. This is - Show Answer

Q106) Provisions for doubtful debts, provision for discount on debtors are based on - Show Answer

Q107) Purposes of an accounting system include all the following except - Show Answer

Q108) Accounting cycle or accounting process includes -
(X) Journalizing (Summarizing)
(Y) Posting to ledger (Recording)
(Z) Final account (Classifying)
Find the correct match.
Show Answer

Q109) __________ includes identifying, recording, classifying and summarizing the transactions. Show Answer

Q110) In which order the accounting transactions and events are recorded in the books? Show Answer

Q111) Journal is the book of in which every transaction is recorded before being posted into the ledger. Show Answer

Q112) __________ is a book in which all the business transactions are originally recorded in chronological order and from which they are posted to the ledger accounts at any convenient time. Show Answer

Q113) Journal has columns. Show Answer

Q114) Transactions which are inter-connected and have taken place simultaneously are recorded by means of a - Show Answer

Q115) is the principal books of account where similar transactions relating to a particular person or property or revenue or expense are recorded. Show Answer

Q116) Ledger is the of accounts where similar transactions relating to a particular person or property or revenue or expense are recorded. Show Answer

Q117) __________ is a books of account; in which all types of accounts relating to assets, liabilities, capital, expenses and revenues are maintained. Show Answer

Q118) The process of recording transaction in journal is termed as - Show Answer

Q119) Process of recording transaction is ledger is known as - Show Answer

Q120) Journal is book of - Show Answer

Q121) Ledger is book for - Show Answer

Q122) The process of equalizing the two sides of an account by putting the difference on the side where amount is short is known as - Show Answer

Q123) Journal and ledger records transactions in - Show Answer

Q124) Ledger book is popularly known as - Show Answer

Q125) At the end of the accounting year all the nominal accounts of the ledger book are - Show Answer

Q126) The sub-division of journal into various subsidiary journals in which transactions of similar nature are recorded are called - Show Answer

Q127) Which of the following is/are the subsidiary books? Show Answer

Q128) Which of the following is/are not subsidiary books? Show Answer

Q129) Purchases book is meant for recording the __________ of goods Show Answer

Q130) Cash purchases are recorded in - Show Answer

Q131) Purchases day book records - Show Answer

Q132) The total of the purchases day book is posted periodically to the debit of - Show Answer

Q133) In the Sales Book of goods are recorded. Show Answer

Q134) Cash sales are recorded in - Show Answer

Q135) Credit sale of various assets or investments will be recorded in - Show Answer

Q136) __________ records the details of goods returned by the business organization to the supplier(s). Show Answer

Q137) When the goods are returned to the supplier, a is sent to him. Show Answer

Q138) The total amount column of the sales return book is - Show Answer

Q139) The total amount column of the purchases return book is - Show Answer

Q140) Goods Outward Journal is meant for recording all returns of goods Show Answer

Q141) The details of goods returned by the customers to the business organization are recorded in _____ book. Show Answer

Q142) __________ is used to record the details of bills receivable by the business organization. Show Answer

Q143) __________ is used to record the details of bills receivable by the business organization. Show Answer

Q144) __________ is used to record the particulars of all the bills payable accepted by the business organization for the purpose of paying amounts due to its creditors. Show Answer

Q145) The total of the amount of the bills receivable book is posted to the _____ in the ledger. Show Answer

Q146) The total of the amount of the bills payable book is posted to the _____ in the ledger. Show Answer

Q147) When fixed assets or stationeries are purchased on credit, the entries are passed in the Show Answer

Q148) Which of the following books is used to record purchase of machinery by cash? Show Answer

Q149) When obsolete assets are sold on credit, these are originally recorded in the - Show Answer

Q150) __________ is the book in which all transactions concerning cash receipts and cash payments are recorded. Show Answer

Q151) Cash Book is in the form of - Show Answer

Q152) Balance of cash column in cash book has - Show Answer

Q153) Which of the following is / are features of cash book? Show Answer

Q154) Which of the following is / are features of cash book? Show Answer

Q155) Which of the following is type of cash book? Show Answer

Q156) Which of the following is the kind of a cash book? Show Answer

Q157) Cash book is a type of _____ but treated as a _____ of accounts. Show Answer

Q158) Which of the following is not a column of a three-column cash book? Show Answer

Q159) Rent due for the month of March will appear - Show Answer

Q160) The cash book records - Show Answer

Q161) Which of the column of the cash book can have credit opening or closing balance? Show Answer

Q162) Which of the column of the cash book is never balanced - Show Answer

Q163) Cash account is - Show Answer

Q164) Total of debit side discount column of cash book is posted to - Show Answer

Q165) The debit balance of a cash account shows - Show Answer

Q166) Contra entry appears in - Show Answer

Q167) Contra entries are passed only when - Show Answer

Q168) If a transaction involves both cash and bank account, it is entered on both sides of the cash book, one in the cash column and second in the bank column, though on opposite sides. This is called - Show Answer

Q169) Payments in cash of small amounts like travelling expenses, postage, carriage etc. are recorded in the - Show Answer

Q170) The balance in the petty cash book is - Show Answer

Q171) Which of the following is/are advantages of the imprest system? Show Answer

Q172) The petty cashier generally works on system. Show Answer

Q173) Petty Cash Book may be treated as a - Show Answer

Q174) Which of the following statements is/are true?
(i) Cash book records all cash receipts and cash payments
(ii) Cash book records all sale and pur¬chase transactions of goods both in cash and on credit.
(iii) Cash book records discount on cash payments
Select the correct answer from the options given below -
Show Answer

Q175) __________ are passed at the beginning of the financial year to open the books by recording the assets, liabilities and capital appearing in the balance sheet of the previous year. Show Answer

Q176) __________ are used at the end of the accounting year for closing of accounts relating to expenses and revenues. Show Answer

Q177) Opening, closing and adjustment entries are recorded in - Show Answer

Q178) At the end of the accounting year, are to be passed for outstanding/ prepaid expenses, accrued income/income received in advance etc. Show Answer

Q179) _____ are passed in the general journal for transferring an item entered in one account to another account. Show Answer

Q180) __________ are passed for rectifying errors which might have committed in the books of account. Show Answer

Q181) A is a schedule or list of balances of both debit and credit extracted from various accounts. Show Answer

Q182) It is a check on the accuracy of posting. If the trial balance agrees it proves that -
1. Books are arithmetically accurate.
2. Both the aspects of the transactions have been correctly recorded in the books of original entry as well as in the ledger.
The correct answer is -
Show Answer

Q183) At the end of the accounting period or at the end of each month, the balances of the ledger accounts are extracted and is prepared to test as to whether the total debits are equal to total credits. Show Answer

Q184) Which of the following is/are method for preparation of trail balance? Show Answer

Q185) If the trial balance do not agree after transferring the balance of all ledger accounts including cash and bank balance and also errors are not located timely, then the trial balance is tallied by transferring the difference of debit and credit side to an account known as - Show Answer

Q186) The balances of all assets accounts, expenses accounts, losses, drawings are placed in the _____ of the trial balance. Show Answer

Q187) The balances of all liabilities accounts, income accounts, profits, capital are placed in the _____ of the trial balance. Show Answer

Q188) A trial balance will not balance if - Show Answer

Q189) All expense and _____ accounts appearing in the trial balance are transferred to the trading and profit and loss account. Show Answer

Q190) After the preparation of ledgers, the next step is the preparation of - Show Answer

Q191) Difference of totals of both debit and credit side of the trial balance is transferred to - Show Answer

Q192) Bank overdraft is shown on the _____ side of trial balance Show Answer

Q193) After preparing the trial balance the accountant finds that the total of debit side is short by Rs. 1,500. This difference will be - Show Answer

Q194) Purchase of furniture on cash for Rs. 1,50,000 will be recorded in - Show Answer

Q195) Purchased goods for Rs. 90,000 from Mr. N on credit will be recorded in - Show Answer

Q196) Rs. 3,50,000 cash paid to creditors for settlement of credit purchases will be recorded in - Show Answer

Q197) Sold furniture on cash for Rs. 1,50,000 will be recorded in - Show Answer

Q198) Sold goods for Rs. 90,000 to Mr. Z on credit will be recorded in - Show Answer

Q199) Received cash of Rs. 2,00,000 from debtors for settlement of credit sales will be recorded in - Show Answer

Q200) Mr. N returns the goods of Rs. 50,000 purchased on credit to Mr. Z. This transaction will recorded by Mr. N in _____ and by Mr. Z in _____ Show Answer

Q201) If Mr. Z draws the bill of exchange for Rs. 75,000 on Mr. N. This transaction will be recorded by Mr. Z in _____ and by Mr. N in _____ Show Answer

Q202) An allowance of Rs. 50 was offered for an early payment of cash of Rs. 1,050. It will be recorded in - Show Answer

Q203) A second hand motor car was purchased on credit from B & Co. for Rs. 10,000. It will be recorded in - Show Answer

Q204) Goods were sold on credit basis to Mr. Ram for Rs. 10,000, It will be recorded in - Show Answer

Q205) Accounting for recovery from Mr. C of an amount of Rs. 2,000 earlier written off as bad debt will be recorded in - Show Answer

Q206) Credit purchase of stationery worth Rs. 5,000 by a stationery dealer will be recorded in - Show Answer

Q207) A bills receivable of Rs. 10,000, which was received from a debtor in full settlement for a claim of Rs. 11,000 dishonoured will be recorded in - Show Answer

Q208) Outstanding salary Rs. 34,000 to be provided in the accounts will be recorded in - Show Answer

Q209) A debit note for Rs. 20,000 issued to Mr. Z for goods returned by us is to be accounted for in - Show Answer

Q210) Investment was sold in cash for Rs. 1,00,000 at par will be recorded in - Show Answer

Q211) Investment was sold on credit for Rs. 1,00,000 at par will be recorded in - Show Answer

Q212) Salary paid in cash - Rs. 50,000 will be recorded in - Show Answer

Q213) NSZ Ltd. makes payments to its sundry creditors through cheques and the cash discount received on these payments is recorded in the triple-columnar cash book. In the event of dishonour of any such cheques, the discount so received should be written back through -
(i) A debit to discount column of the cash book.
(ii) A credit to discount column of the cash book.
(iii) A credit to bank column of the cash book.
(iv) A debit to discount account through journal proper.
(v) A credit to creditor’s account through journal proper.
Select the correct answer from the options given below -
Show Answer

Q214) Which of the following statements is correct? Show Answer

Q215) __________ is that expenditure which results in acquisition of an asset or which results in an increase in the earning capacity of a business. Show Answer

Q216) Expenses whose benefit expires within the year of expenditure and which are incurred to maintain the earning capacity of existing assets are termed as - Show Answer

Q217) There are certain expenses which may be in the nature of revenue but their benefit may not be consumed in the year in which such expenditure has been incurred; rather the benefit may extend over a number of years are termed as - Show Answer

Q218) Which of the following is / are example of capital expenditure? Show Answer

Q219) Which of the following is/are example of capital expenditure? Show Answer

Q220) Amounts paid for wages, salary, carriage of goods, repairs, rent and interest, etc., are items of - Show Answer

Q221) Costs incurred to acquire an asset are but costs incurred to keep them in working condition or to defend their ownership are Show Answer

Q222) Which of the following is/are not example of capital expenditure Show Answer

Q223) Depreciation on fixed assets is - Show Answer

Q224) All sums spent up to the point an asset is ready for use should also be treated as - Show Answer

Q225) Fee paid to a lawyer for checking whether all the papers are in order before land is purchased is _____ But if later a suit is filed against the purchaser, the legal costs will be ___________ Show Answer

Q226) The convention that states that the accounting practice should be followed consistently over the years Show Answer

Q227) Claims against the company not acknowledged as debts are Show Answer

Q228) A concern maintains a petty cash book under the interest system. The interest amount is Rs. 250. At the beginning of a week the petty cash book has a debit balance of Rs. 27. Amount needed to restore the interest is Show Answer

Q229) A petty cash account has an interest of Rs. 250. Currently the account has a debit balance of Rs. 30 Cash needed to restore the interest is Show Answer

Q230) Conservatism concept does not require Show Answer

Q231) As per duality concept or accounting equivalence concept, which of the following is correct? Show Answer

Q232) The petty cash is kept on the interest system and the balance at the start of the month is Rs. 300 if petty cash expenses during the month of Rs. 270 are incurred, the amount received from the cashier at the start of the next month should be Show Answer

Q233) Recording of Fixed Assets at cost ensures adherence of Show Answer

Q234) Human resources will not appear in the balance sheet according to ............. concept. Show Answer

Q235) The main purpose of petty cash is Show Answer

Q236) 'A Limited' purchased goods of Rs. 10,00,000, and sold 90% of goods and remaining goods market value is Rs. 90,000, and closing stock is 10%, but he recorded Rs. 90,000 and not Rs. 1,00,000. Which concept does he follows: Show Answer

Q237) Under the interest system the petty cash is Show Answer

Q238) Assets are held in the business for the purpose of: Show Answer

Q239) It is essential to standardize the accounting principles and policies in order to insure: Show Answer

Q240) In the financial statement, contingent liability is: Show Answer

Q241) Rohan purchased goods for Rs. 25,00,000 and sold 4/5th of the goods amounting Rs. 18,00,000 and met expenses amounting Rs. 2,50,000 during the year, 2013. He counted net profit as Rs. 3,50,000 which accounting concept was followed by him? Show Answer

Q242) The determination of expenses for an accounting period is based on the principle of: Show Answer

Q243) The concepts of Conservation in balance sheet results in: Show Answer

Q244) An analytical petty cash book Show Answer

Q245) A petty cash book is usually maintained by Show Answer

Q246) Which of the following is not a contingent liability? Show Answer

Q247) A petty cash book records Show Answer

Q248) The concept of conservatism will have the effect off: Show Answer

Q249) The balance of petty cash book represents Show Answer

Q250) Accounting is a / an ............. Show Answer

Q251) Accounting does not record non-financial transactions because of ............. Show Answer

Q252) The determination of expenses for an accounting period is based on the concept of Show Answer

Q253) Decrease in the amount of creditors results in Show Answer

Q254) Accounting does not record non-financial transactions because of Show Answer

Q255) Which of the following transactions will be entered in the journal Proper? Show Answer

Q256) Which one of the following character is not related to Financial Accounting? Show Answer

Q257) Which one of the following equation is correct? Show Answer

Q258) Returns Inward Book is used to record Show Answer

Q259) Accounting does not record non-financial transactions because of Show Answer

Q260) Returns Inward Book is used to record Show Answer

Q261) Sales Day Book is used to record Show Answer

Q262) Purchase Day Book is used to record Show Answer

Q263) Gopal Bros, have purchased a filing cabinet for office use, from Office Supplies Ltd. paying immediately by cash. This transaction will be entered in the Show Answer

Q264) Accounting cycle ends with preparation of ............. Show Answer

Q265) The credit purchases of fixed assets are recorded in Show Answer

Q266) The total of discount column on the debit side of the Cash Book, is posted to the Show Answer

Q267) The Trial Balance checks: Show Answer

Q268) Cash sales at exhibition hall are: Show Answer

Q269) A Capital Reserve is built out of Show Answer

Q270) Wages paid for installation of assets should be debited to Show Answer

Q271) Revenue Reserves are built out of Show Answer

Q272) A transaction affects three accounts, one account is debited by Rs. 7,500 another account is credited by Rs. 9,000. Third account will be Show Answer

Q273) Shiva who was a creditor for Rs. 47,000, his account was settled for 145,850. At the time of settlement, Shiva's account would be debited by Show Answer

Q274) Which of the following is a transaction of contra entry? Show Answer

Q275) Which of the following is not a business transaction? Show Answer

Q276) Cash column of cash book can never have Show Answer

Q277) Interest paid on loan taken for purchase of asset should be debited to Show Answer

Q278) Identify Personal Account from the following: Show Answer

Q279) Compound journal entry contains Show Answer

Q280) Which one of the equation is correct? Show Answer

Q281) Journal is a Show Answer

Q282) Which is the correct, if cash sales of Rs. 2000 is omitted to be recorded in cash sales account? Show Answer

Q283) How is the "distribution of goods as free sample" recorded in the Journal? Show Answer

Q284) Which is the correct equation as per the double entry concept? Show Answer

Q285) Which of the following is not a personal account? Show Answer

Q286) From the following, which is not considered as subsidiary book? Show Answer

Q287) Journal is a Show Answer

Q288) Ledger is also called Show Answer

Q289) The process of balancing of an account involves equalization of both sides of the account. If the debit side of an account exceeds the credit side, the difference is put on the credit side. The said balance is
(i) A Debit balance
(ii) A Credit balance
(iii) An expenditure or an Asset
(iv) An Income or a Liability Show Answer

Q290) Credit sale is recorded in: Show Answer

Q291) If wages are paid for construction of business premises ............. A/c is credited and ............. A/c is debited. Show Answer

Q292) Which of the following is not a Real Account? Show Answer

Q293) What is the principle of nominal A/c? Show Answer

Q294) Debit notes issued are used to prepare ............. Show Answer

Q295) The ............. in a ledger helps in locating the accounts contained in it: Show Answer

Q296) Purchase of goods on credit: Show Answer

Q297) An Investment is one asset A/c may lead to: Show Answer

Q298) In an account if Debit side> Credit side, the balance is known as the: Show Answer

Q299) Which of these transactions will not be recorded in cash book: Show Answer

Q300) Revenue is generally recognised as being earned at that point of time when: Show Answer

Q301) A Customer returning the goods purchased on credit, may inform the seller by sending: Show Answer

Q302) Sales of office furniture should be credited to: Show Answer

Q303) Sale or Return Day Book and Sale or ledger Return Ledger are known as: Show Answer

Q304) Rs. 1,000 paid as wages for erecting machine should be debited to: Show Answer

Q305) The process of balancing of an account involves equalization of both sides of the account. If the debit side of an account exceeds the credit side the difference is put on the credit side. The said balance is:
(i) A debit balance
(ii) A credit balance
(iii) An expenditure or an asset
(iv) An income or a liability Show Answer

Q306) Which of the following is an example of Personal Account? Show Answer

Q307) Which of the following is not a financial statement? Show Answer

Q308) Which English alphabet is similar to the shape of an account? Show Answer

Q309) Which column of Cash Book never balanced? Show Answer

Q310) The amount payable to a person as consideration for the use of right vested in him is: Show Answer

Q311) The closing balance of a petty cash book is a / an ............. Show Answer

Q312) Goods bought for Rs. 25,000 passed through sales day book will result in ............. Show Answer

Q313) Narration are given at the end of Show Answer

Q314) Nominal Account represents Show Answer

Q315) Prepaid rent is a Show Answer

Q316) Purchases book is used to record Show Answer

Q317) The source document or voucher used for recording entries in Sales Book is Show Answer

Q318) Trade discount allowed at the time of sale of goods is Show Answer

Q319) A sale of goods to Ram for cash should be debited to Show Answer

Q320) Ledger contains various ............. in it. Show Answer

Q321) The balance of the Petty Cash is a/an Show Answer

Q322) Closing stock appearing in the Trial Balance is shown in Show Answer

Q323) Identify the 'Personal Account' from the following. Show Answer

Q324) Which of the following is a transaction of contra entry? Show Answer

Q325) When Trial Balance will not tally/mismatch? Show Answer

Q326) Which balance is not considered for closing entries on the basis of trial balance for transferring to Trading and Profit & Loss Account? Show Answer

Q327) Cash book is a Show Answer

Q328) The periodical total of the Sale Return Book is posted to the Show Answer

Q329) Narration is given at the end of Show Answer

Q330) Which one of the following is an example of Personal Account? Show Answer

Q331) A withdrawal of cash from business by the proprietor should be credited to Show Answer

Q332) Which financial statement represent the accounting equation ............. Asset = Liability + Owner's equity: Show Answer

Q333) A debit note issued to a creditor for goods returned is to be recorded in the Show Answer

Q334) Cash book is a form of Show Answer

Q335) A sale of goods to Laxman for cash should be debited to Show Answer

Q336) The debts written off earlier as bad, subsequently recovered are Show Answer

Q337) Which of the following transaction is not recorded in cash book? Show Answer

Q338) Credit purchase of fixed asset is recorded in Show Answer

Q339) When cash received for services rendered in the past Show Answer

Q340) The trial balance checks Show Answer

Q341) ............. does fulfil the function of both a journal and a ledger. Show Answer

Q342) Which of the following is artificial personal account? Show Answer

Q343) Journal proper uses to record ............. Show Answer

Q344) Double Entry Principle means: Show Answer

Q345) Which of the following is not a function of accounting? Show Answer

Q346) The system of recording transactions based on dual concept is called Show Answer

Q347) Which is not function of accounting? Show Answer

Q348) The total of the Purchases Day Book for the month will be entered on the Show Answer

Q349) The sale of a business asset on credit is recorded in Show Answer

Q350) On 31st Dec, 2006 assets of the business are Rs. 3,00,000 and its capital is Rs. 1,00,000. Its liabilities on that date will be Show Answer

Q351) When goods are returned to suppliers, the suppliers will also receive Show Answer

Q352) Book- keeping is mainly concerned with Show Answer

Q353) The books of accounts of a firm of office equipment suppliers include the usual subsidiary books and three ledgers; purchases, sales and general. If a typewriter is purchased on credit for the purpose of resale, the subsidiary book and ledger(s) to be used for recording this transaction should be Show Answer

Q354) Accounting cycle starts with ............. ends with ............. : Show Answer

Q355) According to Dual aspect concept, which of the following is incorrect: Show Answer

Q356) What does 'AICPA' stands for: Show Answer

Q357) "The system of book keeping by double entry is, perhaps the most beautiful one in the wide domain of literature or science. Were it less common, it would be the administration of the learned world" is spoken by: Show Answer

Q358) Who originated the double entry system of accounting: Show Answer

Q359) A credit note received from a supplier would be recorded in Show Answer

Q360) Closing entries are recorded in Show Answer

Q361) Which organisation uses cash system of Accounting? Show Answer

Q362) What is the full form of GAAP: Show Answer

Q363) Who defined this statement "An account has been defined as a formal record of a particular type of transaction expressed in money". Show Answer

Q364) Which of the following is NOT a characteristic of Accounting? Show Answer

Q365) Which of the following is NOT a branch of Accounting? Show Answer

Q366) "Book keeping starts where accounting ends": Show Answer

Q367) Following one is not a book of original entry Show Answer

Q368) Which of the following is not a form of personal account? Show Answer

Q369) Closing entries are recorded in Show Answer

Q370) Which of the following is not the purpose of accounting? Show Answer

Q371) Mohan a cloth merchant buys cloth for Rs. 50,000 paying cash Rs. 20,000. What is the amount of expense as per accrual concept? Show Answer

Q372) The principal book of account is Show Answer

Q373) Rustam and Co. Purchases a typewriter for office use from Equipment Suppliers Ltd., payment immediately by cash. This transaction will be entered in the Show Answer

Q374) Revaluation account is a: Show Answer

Q375) In which of the book cash purchase is recorded? Show Answer

Q376) In case of three column cash book, contra entry is related with: Show Answer

Q377) Double Entry principle means: Show Answer

Q378) If salaries paid appearing in the trial balance for the year ending 2017 is Rs. 7,500 and it is given in the adjustments that the salary unpaid for the year ending 2017 is Rs. 2,500. The total amount to be debited to the Profit and Loss Account under the head salaries will be: Show Answer

Q379) The three columns on each side of a three columns cash book represent: Show Answer

Q380) Mathur & Co. purchases a motor car on credit from Auto Distributors for the purpose of resident. This transaction will be entered in the Show Answer

Q381) Credit balance of a personal account indicates: Show Answer

Q382) Cash account will show: Show Answer

Q383) Ledger Book is popularly known as: Show Answer

Q384) Cash book is a: Show Answer

Q385) The balance in the petty cash book is: Show Answer

Q386) Balance of cash book is posted to the ledger. Show Answer

Q387) A cheque received and deposited in the same day is recorded in the: Show Answer

Q388) In a three column Cash Book: Show Answer

Q389) Purchases book is used to record: Show Answer

Q390) Sales returns book is used to record: Show Answer

Q391) Purchase for office furniture on account is recorded in: Show Answer

Q392) Acceptances received and recorded in Bills Receivable Book are transferred to ledger: Show Answer

Q393) A Return Inwards Book is kept to record: Show Answer

Q394) A second hand motor car was purchased on credit from Mohan will be recorded in the? Show Answer

Q395) Which of these is a method of preparation of Trial Balance? Show Answer

Q396) If Trial Balance tallies it surely means that there are no errors in books of account. This statement is ............. Show Answer

Q397) Which of the following is both a principal as well as a subsidiary book? Show Answer

Q398) If goods worth Rs. 20,000 are stolen, then it shall be recorded in: Show Answer

Q399) The total of purchase book will be posted in ledger in: Show Answer

Q400) The total of sales book will be posted in ledger in: Show Answer

Q401) The total of sales return will be recorded in the ledger by: Show Answer

Q402) Which of the following transactions will be recorded in the sales book of Mohit Furnitures & Co.? Show Answer

Q403) Which of the following transactions will be recorded in the purchase book of Sharma Cloth House? Show Answer

Q404) Which of the following is NOT included in Trial Balance? Show Answer

Q405) If the trial balance is NOT reconciled, then it is reconciled by opening: Show Answer

Q406) The overdraft balance in the Savings A/c of the bank will be at the Show Answer

Q407) Which of the following transactions are recorded in purchase book? Show Answer

Q408) If goods worth Rs. 5000 are taken by the proprietor for personal use, the entry will be: Show Answer

Q409) The Balance in the bank pass book is: Show Answer

Q410) Maintaining petty cash book is: Show Answer

Q411) Purchase book records: Show Answer

Q412) Sales Book is prepared: Show Answer

Q413) In which book does the cash sales will be recorded Show Answer

Q414) The following is entered in the Journal Proper Show Answer

Q415) The Returns Outfit and Day Book is entered up from the following documents Show Answer

Q416) If capital is Rs. 10,000, creditors Rs. 5,000, B/P Rs. 2,000. Machinery Rs. 2,000, Prepaid expenses Rs. 1,000. Land and Building Rs. 5,000. Find the value of Debtors is: Show Answer

Q417) B/P Rs. 20,000, creditors Rs. 10,000, Debtors Rs. 5,000, Investment Rs. 2,00,000 Plant and Machinery is Rs. 1,50,000, closing stock is Rs. 20,000 find the capital: Show Answer

Q418) The Purchase Day Book is entered up from the following documents Show Answer

Q419) The Sales Day Book is entered up from the following documents Show Answer

Q420) A suspense account facilitates the preparation of ............. when the ............. has not been tallied. Show Answer

Q421) After preparing the trial balance the accountant finds that the total of the debt side is short by Rs. 51,000. This difference will be: Show Answer

Q422) Day books are used because Show Answer

Q423) The bank column of a cash book may show Show Answer

Q424) In a three column Cash Book Show Answer

Q425) When both the aspects of a transaction are recorded in the cash book itself, it is called Show Answer

Q426) Cash book is a Show Answer

Q427) Cash Book is Show Answer

Q428) Cash book records Show Answer

Q429) When a firm maintains a simple cash book (with cash column only), it need not maintain Show Answer

Q430) When a firm maintains a three column cash book, it need riot maintain Show Answer

Q431) A simple cash book (with cash column only) may show Show Answer

Q432) Rs. 3,000 drawn by the proprietor for personal use should be debited to Show Answer

Q433) A Journal is Show Answer

Q434) A Ledger is Show Answer

Q435) Transactions are first recorded Show Answer

Q436) The process by which the entries in the journal are transferred to the accounts in the ledger is called Show Answer

Q437) If more than two accounts are affected by a business transaction, the sum of the debits must be Show Answer

Q438) A book of accounts is called a (an) Show Answer

Q439) The following account has a credit balance Show Answer

Q440) The following account has a credit balance Show Answer

Q441) The following account would be found in the purchases ledger Show Answer

Q442) The following account normally has a debit balance Show Answer

Q443) The following account normally has a credit balance Show Answer

Q444) Following account has a credit balance Show Answer

Q445) The following account has a debit balance Show Answer

Q446) A credit balance on Bipin's account (a supplier of goods) in your ledger means that Show Answer

Q447) The following is a book of original entry and is also part of the ledger Show Answer

Q448) Classified summary of all transactions is called Show Answer

Q449) What is put in the posting reference column of an account? Show Answer

Q450) What is put in the posting reference column of a journal? Show Answer

Q451) Which one of the following has a credit balance in the ledger? Show Answer

Q452) The following account would be found in the debtors ledger Show Answer

Q453) Which one of the following happenings could not account for a credit balance on a trade debtor's account? Show Answer

Q454) A credit balance on a sole trader's capital account is Show Answer

Q455) Sales account, salaries account and capital account normally have Show Answer

Q456) Furniture account, rent received account and debtors account normally have Show Answer

Q457) The basic accounting equation is Show Answer

Q458) Assets minus owner's equity equals Show Answer

Q459) The equity of owner of a business enterprise is referred to as Show Answer

Q460) A business enterprise pays Rs. 500 to its creditor. The effect of the transaction on accounting equation is Show Answer

Q461) During an accounting period total assets decrease by Rs. 5,000 and capital increases by Rs. 20,000. The amount and direction of the period's change in external liabilities is Show Answer

Q462) Which of the following would cause a change in the capital of a sole trader? Show Answer

Q463) Which of the following.transactions would affect the cash position of a sole trader? Show Answer

Q464) Purchase of machine for cash Show Answer

Q465) Withdrawals by proprietor Show Answer

Q466) On sale of old equipment, owners equity Show Answer

Q467) The assets of a business are worth Rs. 1,56,000 and its capital is Rs. 96,000. Its liabilities are: Show Answer

Q468) The liabilities of a business are Rs. 40,000 and the proprietor's claim is Rs. 70,000. The total assets amount to Show Answer

Q469) Which of the following is true? Show Answer

Q470) Which of the following events does not represent a business transaction? Show Answer

Q471) Which of the following events represents a business transaction? Show Answer

Q472) In double entry system of book-keeping every business transaction affects Show Answer

Q473) Double entry means Show Answer

Q474) Which of the following is a personal account? Show Answer

Q475) Purchase of an asset is Show Answer

Q476) Which of the following one is real account? Show Answer

Q477) Commission earned but not received is a Show Answer

Q478) Which of the following is a nominal account? Show Answer

Q479) Patent right account is of the nature of Show Answer

Q480) Increase in liability and revenue are recorded on the Show Answer

Q481) Decrease in an asset account is recorded on the Show Answer

Q482) Increase in an expense account is recorded on the Show Answer

Q483) Increase in capital is recorded on the Show Answer

Q484) Purchase of goods for cash from Arun should be recorded by Show Answer

Q485) Payment of a firm's rent from the business bank account should be recorded by Show Answer

Q486) Cash brought in by the proprietor as capital should be recorded by Show Answer

Q487) Withdrawal of goods from stock by the owner of the business for personal use should be recorded by Show Answer

Q488) Goods returned by Nisit, a customer should be recorded by Show Answer

Q489) Sale of goods on credit to Dipak should be recorded by Show Answer

Q490) Which of the following double entry would not record a purchase of goods for resale? Show Answer

Q491) Which of the following is not a satisfactory balance sheet equation? Show Answer

Q492) Trial Balance is Show Answer

Q493) Trial Balance contains balances Show Answer

Q494) The preparation of a trial balance helps in locating Show Answer

Q495) The following is not a book of original entry Show Answer

Q496) The following would be entered in the Journal Proper Show Answer

Q497) Errors of commission arises when Show Answer

Q498) If the credit side of a Trial Balance exceeds the debit side. The Suspense Account will show Show Answer

Q499) A trial balance is Show Answer

Q500) The main purpose of preparing a trial balance is Show Answer

Q501) The verification that the debits and credits in the ledger are equal is called a Show Answer

Q502) The following error would normally be revealed by a trial balance Show Answer

Q503) A trial balance which is out of balance indicates that Show Answer

Q504) The following errors would not prevent the trial balance from agreeing Show Answer

Q505) The trial balance provides Show Answer

Q506) The following errors would prevent the trial balance from agreeing Show Answer

Q507) The following error a trial balance would be able to disclose - Show Answer

Q508) A suspense account can be used as temporary measure to balance the Show Answer

Q509) If a posting is made to the correct class of account and on the correct side, but in a wrong account, it is an error of Show Answer

Q510) A suspense account is opened when the Show Answer

Q511) The following account has a normal debit balance Show Answer

Q512) The tabulation of balances of all ledger accounts as a summary statement is known as Show Answer

Q513) The total of the Purchase Day Book will be posted to Show Answer

Q514) The total of the Sales Day Book will be credited to Show Answer

Q515) The total of the Purchase Returns Day Book will be posted to Show Answer

Q516) The total of the Sales Returns Day Book will be posted to Show Answer

Q517) The following is not an advantage of Double Entry system: Show Answer

Q518) Mines as asset is an example of: Show Answer

Q519) Current Assets are those assets: Show Answer

Q520) A person who owes money to the business is a Show Answer

Q521) Provision is Show Answer

Q522) Preliminary expense is a .....asset Show Answer

Q523) The words 'To Balance b/f' or 'By Balance b/f' are recorded in the 'particulars column' at the time of posting of: Show Answer

Q524) The original cost at which an asset or liability is acquired is known as Show Answer

Q525) Computers taken on hire by a business for a period of twelve months should be classified as: Show Answer

Q526) When complete sequence of accounting procedure is done, which happens frequently, and repeated in same directions during an accounting period, it is called an Show Answer

Q527) While preparing a trial balance, in which method are totals of both the sides of the accounts written in the separate columns? Show Answer

Q528) If the owner's equity is Rs 5,00,000 and outsiders equity is Rs 3,00,000, calculate total equity. Show Answer

Q529) Statement I :It may be prepared on a loose sheet of paper.
Statement II: The ledger accounts are balanced at first. They will have either "debit-balance" or "credit balance" or "nil-balance".
Statement III: The accounts containing debit-balance are written on the debit column, and those with credit credit-balance are written on the credit column. All the above three statements are relevant for: Show Answer

Q530) Purchase goods of the list price of Rs 25,000 from Mohan less 20% trade discount and 2% cash discount. The amount of cash discount is Show Answer

Q531) The amount set aside out of profits is called Show Answer

Q532) Who originated the accounting concept based on double entry system? Show Answer

Q533) Which of the following is an example of fictitious asset? Show Answer

Q534) What is the nature of a cash book? Show Answer

Q535) In each of the following one of the alternatives is correct, indicate the correct one: The convention that states that the accounting practice should be followed consistently over the years Show Answer

Q536) Claims against the company not acknowledged as debts are Show Answer

Q537) A petty cash account has an imprest of Rs 250. Currently the account has a debit balance of Rs 30 cash needed to restore the imprest is: Show Answer

Q538) Recording of Fixed Assets (PPE) at cost ensures adherence of Show Answer

Q539) Human resources will not appear in the balance sheet according to _____ concept Show Answer

Q540) 'A Limited' purchased goods of rs 10,00,000, and sold 90% of goods and remaining goods market value is Rs 90,000, and closing stock is 10%, but he recorded Rs 90,000 and not Rs 1,00,000. Which concept does he follows: Show Answer

Q541) Under the imprest system the petty cash is Show Answer

Q542) Assets are held in the business for the purpose of: Show Answer

Q543) It is essential to standardize the accounting principles and policies in order to insure: Show Answer

Q544) The concepts of Conservation in balance sheet results in: Show Answer

Q545) A petty cash book is usually maintained by Show Answer

Q546) Which of the following is not a contingent liability? Show Answer

Q547) The balance of petty cash book represents Show Answer

Q548) Accounting does not record non-financial transactions because of Show Answer

Q549) Accounting does not record non-financial transactions because of Show Answer

Q550) Returns Inward Book is used to record Show Answer

Q551) The credit purchases of fixed assets(PPE) are recorded in Show Answer

Q552) The trial balance checks: Show Answer

Q553) A capital reserve is built out of Show Answer

Q554) Rs 1,000 paid as wages for erecting machine should be debited to: Show Answer

Q555) Which of the following is an example of Personal account? Show Answer

Q556) The closing balance of a petty cash book is a/an Show Answer

Q557) Goods bought for Rs 25000 passed through sales day book will result in Show Answer

Q558) Nominal account represents Show Answer

Q559) Purchases book is used to record Show Answer

Q560) Trade discount allowed at the time of sale of goods is Show Answer

Q561) The balance of the petty cash is a/an Show Answer

Q562) When trial balance will not tally/mismatch? Show Answer

Q563) Cash book is a Show Answer

Q564) Which financial statement represents the accounting equation _________ Asset= Liability+owner's equity: Show Answer

Q565) Credit purchase of fixed asset is recorded in Show Answer

Q566) Journal proper uses to record Show Answer

Q567) Which is not function of accounting? Show Answer

Q568) The total of the purchases Day book for the month will be entered on the Show Answer

Q569) When goods are returned to suppliers, the suppliers will also receive Show Answer

Q570) Book keeping is mainly concerned with Show Answer

Q571) The books of accounts of a firm of office equipment suppliers include the usual subsidiary books and three ledgers: purchases, sales and general. If a typewriter is purchased on credit for the purpose of resale, the subsidiary book and ledger to be used for recording this transaction should be Show Answer

Q572) "Book keeping starts where accounting ends" Show Answer

Q573) Following one is not a book of original entry Show Answer

Q574) The principal book of account is Show Answer

Q575) Rustom and co. purchases a typewriter for office use from Equipment Suppliers Ltd. payment immediately by cash. This transaction will be entered in the Show Answer

Q576) The three columns on each side of a three columns cash nook represents: Show Answer

Q577) Credit balance of a personal account indicates: Show Answer

Q578) The balance in the petty cash book is: Show Answer

Q579) Purchases book is used to record Show Answer

Q580) Purchase for office furniture on account is recorded in: Show Answer

Q581) Which of these is a method of preparation of Trial Balance? Show Answer

Q582) If goods worth Rs 20000 are stolen, then it shall be recorded in: Show Answer

Q583) The total of sales return will be recorded in the ledger by: Show Answer

Q584) Which of the following is NOT included in Trial Balance? Show Answer

Q585) If the Trial balance is not reconciled, then it is reconciled by opening: Show Answer

Q586) Maintaining petty cash book is: Show Answer

Q587) Sales book is prepared: Show Answer

Q588) The following is entered in the Journal Proper Show Answer

Q589) The returns outward Day Book is entered up from the following documents Show Answer

Q590) If capital is Rs 10,000, creditors Rs 5,000, B/P Rs 2,000. Machinery Rs 2,000, Prepaid expenses Rs 1,000. Land and Building Rs 5,000. Find the value of debtors is: Show Answer

Q591) B/P Rs 20,000, creditors Rs 10,000, Debtors Rs 5,000, Investment Rs 2,00,000 Plant and Machinery is Rs 1,50,000, closing stock is Rs 20,000 find the capital: Show Answer

Q592) After preparing the trail balance the accountant finds that the total of the debt side is short by Rs 51,000. This difference will be Show Answer

Q593) Rs 3,000, drawn by the proprietor for personal use should be debited to Show Answer

Q594) Transactions are first recorded Show Answer

Q595) The process by which the entries in the journal are transferred to the accounts in the ledger is called Show Answer

Q596) If more than two accounts are affected by a business transaction, the sum of the debits must be Show Answer

Q597) The following account would be found in the purchases ledger Show Answer

Q598) The following account normally has a credit balance Show Answer

Q599) Following account has a credit balance Show Answer

Q600) The following account has a debit balance Show Answer

Q601) A credit balance on Bipin's account (supplier of goods) in your ledger means that Show Answer

Q602) Which of the following happenings could not account for a credit balance on a trade debtor's account? Show Answer

Q603) A credit balance on a sole trader capital account is Show Answer

Q604) Sales account, salaries account and capital account normally have Show Answer

Q605) Furniture account, rent received account and debtors account normally have Show Answer

Q606) Assets minus owner's equity equals Show Answer

Q607) During an accounting period total assets decrease by Rs 5,000 and capital increases by Rs 20,000. The amount and direction of the period's change in external liabilities is Show Answer

Q608) Withdrawals by proprietor Show Answer

Q609) The assets of a business are worth Rs 1,56,000 and its capital is Rs 96,000. Its liabilities are: Show Answer

Q610) The liabilities of a business are Rs 40,000 and the proprietor's claim is Rs 70,000. The total assets amount to Show Answer

Q611) Which of the following events represents a business transactions? Show Answer

Q612) Which of the following is a personal account? Show Answer

Q613) Purchase of an asset is Show Answer

Q614) Commission earned but not received is a Show Answer

Q615) Increase in liability and revenue are recorded on the Show Answer

Q616) Decrease in an asset account is recorded on the Show Answer

Q617) Increase in an expense account is recorded on the Show Answer

Q618) Payment of a firm's rent from the business bank account a should be recorded by Show Answer

Q619) Trial Balance is Show Answer

Q620) Trail Balance contains balances Show Answer

Q621) A trial balance is Show Answer

Q622) The verification that the debits and credits in the ledger are equal called a Show Answer

Q623) A trial balance which is out of balance indicates that Show Answer

Q624) The trial balance provides Show Answer

Q625) The following account has a normal debit balance Show Answer

Q626) The total of the Purchase Day Book will be posted to Show Answer

Q627) The total of the Purchase Returns Day Book will be posted to Show Answer

Q628) The total of the sale returns day book will be posted to Show Answer