Account M.C.Q (1 Marks)

________ is a reserve which does not appear in the balance sheet.

The source document for recording entries in the sales return book is generally the ________.

The nature of capital is

The nature of accrued income is:

If the total liabilities of a business decrease by Rs.5000 what will be the effect on total asset? (assuming the amount of capital remain same)

Current Liabilities do not include

Reserves are important because they help in:
A. meeting the future contingencies
B. strengthening the financial position of the business
C. redemption of liabilities like debenture

Reserves are important because they help in:

Recognition of cost in the same period as associated revenues is called ________.

Income is measured on the basis of:

Withdrawal of cash from the business by the proprietor is credited to:

Debit mean

Profit on sale of fixed asset is used to create:

Book Keeping and Accounting:
i. means the same and are used interchangeably.
ii. does not mean the same and are not used interchangeably.
iii. means both (i) and (ii).
iv. None of these.

Cost of Goods Manufactured is determined by:

When a trader sells goods on credit, he prepares a sale ________ which contains the name of the party to whom goods are sold, the rate, quantity and the total amount of sale.

Which equation is incorrect out of the following:

Following are the steps involved in developing an accounting equation (in particular order). Arrange the steps in correct sequence.
i. Find out the effect (in terms of increase or decrease) of a transaction on assets,capitals or liabilities.
ii. Show the effect on appropriate side of an equation and ensure that the total of right hand side is equal to the total of left hand side.
iii. Ascertain the variables (i.e. assets, liabilities or capital) involved in a transaction.

Which of the following accounts has a credit balance?

Assertion (A): If Cash = ₹ 20,000, Machinery = ₹ 30,000, Stock = ₹ 10,000,Creditors = ₹ 40,000, then the net worth of the firm is ₹20,000.
Reason (R): Capital = Liabilities - Assets.

Each cheque has a counterfoil in which the same details as entered in the cheque are filled. The counterfoil remains with the ________ for future purposes.