Dealing between persons is called.
A. Transaction
B. Journal
C. Ledger
D. Trial Balance
ANSWER: A
For preparing balance sheets stock in trade are shown as part of.
A. Assets
B. Liabilities
C. Equities
D. None of these
ANSWER: A
Unpaid and unrecorded incomes are called.
A. Unearned incomes
B. Additional incomes
C. Accrued incomes
D. None of these
ANSWER: C
Goods taken away by the owner should be credited to.
A. Goods
B. Purchases
C. Owner name
D. Drawing
ANSWER: B
Under the straight line method, depreciation charged on.
A. Remaining value
B. Original value
C. Total value
D. Reducing value
ANSWER: B
Goods given as charity by business should be credited to.
A. Charity account
B. Purchases account
C. Cash account
D. Expenses account
ANSWER: B
King of all the books of accounts is called.
A. Journal
B. Ledger
C. Trial balance
D. Balance sheet
ANSWER: B
Income statement is always prepared.
A. For the year ended
B. As on a specified date
C. End of fiscal year
D. None of these
ANSWER: A
The relation of the in direct expenses is with.
A. Sales
B. Purchases
C. Assets
D. Capital
ANSWER: A
Interest on bank loan are called.
A. Direct expenses
B. Miscellaneous expenses
C. Operating expenses
D. Other expenses
ANSWER: D
An art of recording, classifying and summarizing of transactions is called.
A. Book keeping
B. Accounting
C. Auditing
D. Recording
ANSWER: B
Return inward is also known as.
A. Purchase return
B. Sales return
C. Return received
D. None of these
ANSWER: B
Modern system of book keeping is called.
A. American system
B. British system
C. Single entry system
D. Double entry system
ANSWER: D
The main purpose of business is.
A. Sales
B. Purchases
C. Exchange
D. Earning profit
ANSWER: D
Assets having no physical existence are called.
A. Intangible assets
B. Tangible assets
C. Current assets
D. Liquid assets
ANSWER: A
The unsold goods are.
A. Equity
B. Purchases
C. Inventory
D. Sales
ANSWER: C
A business entity has assets of Rs.50,000 and liabilities of Rs.20,000 owner’s equity is.
A. 20,000
B. 25,000
C. 30,000
D. 15,000
ANSWER: C
Nominal account are related to.
A. Income and expenses
B. Assets and liabilities
C. Debts and receipts
D. Customers and creditors
ANSWER: A
Building account is an example of.
A. Real account
B. Nominal account
C. Personal account
D. Major account
ANSWER: A
Creditors account is an example of.
A. Real account
B. Nominal account
C. Personal account
D. Major account
ANSWER: C
A folio means.
A. Chapter
B. Register
C. Paragraph
D. Page
ANSWER: D
In a journal, there are.
A. Two columns
B. Three columns
C. Four columns
D. Five columns
ANSWER: D
An entry in which only one account is debited or credited is called.
A. Simple entry
B. Journal entry
C. Compound entry
D. Combined entry
ANSWER: A
Excess of credit balance over debit balance is called.
A. Debit balance
B. Credit balance
C. Excess balance
D. Nil balance
ANSWER: B
Pass book is also known as.
A. Cash book
B. Bank statement
C. Day book
D. None of these
ANSWER: B
Assets – liabilities is equal to.
A. Income
B. Expense
C. Capital
D. Assets
ANSWER: C
Unfavourable balance of cash book means.
A. Debit balance
B. Credit balance
C. Zero balance
D. Bank balance
ANSWER: B
Those cheques which are issued and cashed are called.
A. Presented cheques
B. Uncashed cheques
C. Unpresented cheques
D. Uncredited cheques
ANSWER: A
The relation of the direct expenses is with.
A. Sales
B. Purchases
C. Assets
D. Capital
ANSWER: B
Transportation in are called.
A. Direct expenses
B. Indirect expenses
C. Operating expenses
D. Other expenses
ANSWER: A
