1. _______________ is prepared at the end of the accounting period to show the financial
position o f business
a. Profit & low account
b. Balance sheet
c. Trail balance
2. Payment of monthly rent to land cord is
a. Economic event
b. Non-economic event
c. None of these
3. _____________is the original form of accounting
a. Financial accounting
b. Cost accounting
c. Management accounting
4. _____________is an example of fixed asset
a. Receivable
b. Stock
c. Land & buildings
5. The term _________denotes the cost of services and things used for earning revenue
a. Income
b. Expense
c. Loss
6. A person who owes money to the business is a __________
a. Debtor
b. Creditor
c. Investor
7. A _________ is a person to whom business owes money
a. Creditor
b. Debtor
c. proprietor
8. ___________denote goods brought for sale.
a. Sales
b. Purchase
c. Expenses
9. ________________ is an example of wasting asset
a. Mines
b. Land
c. Closing stock
10. Asset acquired for long period of time in the business is known as ___________
a. Fixed asset
b. Current asset
c. Fictitious asset
11. Things which are purchased by the business for resale are called________
a. Purchase
b. Sale
c. Liability
12. ____________ expenditure is increased to maintain the business or to keep the assets in
good working condition
a. Revenue
b. Capital
c. Both of there
13. ______________ is the major source of revenue of any business
a. Purchase
b. Sale
c. Interest
d. Commission
14. _______________ represent the amount invested by the owner into business.
a. Capital
b. Revenue
c. Asset
15. A___________ transaction is one where in items are exchanged for other items
a. Cash
b. Credit
c. Barter
16. Excess of current asset over current liabilities is known as _________ capital
a. Fixed
b. Working
c. Current
17. ___________ is not a tangible asset
a. Goodwill
b. Land
c. Closing stock
18. According to _________ concept it is assumed that the business will last for long time
a. Accounting entity
b. Going concern
c. Accounting period
19. Accounting is concerned with
a. Monetary
b. Non- monetary
c. Monetary & Nonmonetary
20. Transaction& events not capable of being expressed in terms of money are not to be
recorded in accounting due to
a. Going concern
b. Accounting entity
c. Money measurement
21. Income is measured on the basics of
a. Entity concept
b. Accounting period concept
c. Going concern concept
22. The policy of anticipate no profit and provide for all possible losses is followed due to
a. Conservation concept
b. Consistency concept
c. Cost concept
23. In every business transaction at least ______parties are involved
a. Two
b. Three
c. Four
24. Source documents include
a. Vouchers
b. Receipts
c. Bill
d. All these
25. All those to whom business owes to money are
a. Debtor
b. Creditor
c. Investor
26. Accounts receivable normally has ________ balance
a. Credit
b. Debit
c. Negative
27. Financial statements are the part of _________
a. Book- keeping
b. Accounting
c. None of the above
28. Bank account is a _________
a. Personal accounting
b. Real account
c. Nominal account
29. Cost of goods old can be calculated by
a. Balance sheet
b. Profit& loss account
c. Trading account
30. Capital expenditure are recorded in the __________
a. Balance sheet
b. Profit & loss account
c. Trading account
31. Nominal accounts are related to
a. Assets& liability
b. Expenses & losses
c. Debtors & creditors
32. Sales journal is used for recording
a. Cash sales
b. Credit sales
c. Total sale
33. Trading account is a ____________account
a. Real
b. Nominal
c. Personal
34. Closing stock is valued at ____________
a. Market price
b. Cost price
c. Cost price or market price whichever is less
35. Balance sheet is an ______________
a. Statement
b. Account
c. Both
36. Wages paid on for the erection of machinery is debited to
a. Machinery accounting
b. Wage accounting
c. Cash accounting
37. Income tax is debited to ________________
a. Profit and loss account
b. Cash accounting
c. Drawings account
38. Goods taken by the proprietor for personal is shown as a deduction from_____________
a. Sales
b. Capital
c. Purchase
39. Asset that can be converted into cash within a year are called _________asset
a. Current
b. Fixed asset
c. Wasting asset
40. Balance sheet is prepared for a ____________
a. Period
b. On a particular date
c. Entire life of business
41. Income received in advance is an ___________
a. Asset
b. Liability
c. Expenses
42. If goods are destroyed by fire , the total value of loss is __________ to trading account.
a. Debited
b. Credited
c. Not taken
43. Provision for account on creditors has a _________________balance
a. Debit
b. Credit
c. None of these
44. Income earned but not received to known as _______________ income
a. Accrued
b. Prepaid
c. Nominal
45. Prepaid expense is _________ to the business
a. Asset
b. Liability
c. Expenses
46. Withdrawing more amount from bank than the deposit in the account is termed as____
a. Fixed deposit
b. Current deposit
c. overdraft
47. Income of overdraft, pass book will show __________balance
a. Debit
b. Credit
c. None of these
48. Cash book shows ___________balance when there is an O.D.
a. Debit
b. Credit
c. None of these
49. When bank charge incurred, overdraft will be __________________________
a. increased
b. decreased
c. no charge
50. __________________ balance in cash book indicate deposit balance
a. Credit
b. Debit
c. Any balance
ANSWERS
1.b
2.a
3.c
4.c
5.b
6.a
7.a
8.b
9.a
10.a
11.a
12.a
13.b
14.a
15.c
16.b
17.a
18.b
19.a
20.c
21.b
22.b
23.a
24.d
25.b
26.b
27.b
28.a
29.c
30.a
31.b
32.b
33.b
34.c
35.a
36.a
37.c
38.c
39.a
40.b
41.b
42.b
43.a
44.a
45.a
46.c
47.a
48.b
49.a
50.b