Tag: elements of accounts

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Questions Related to elements of accounts

Multiple choice elements of accounts subsidiary books - 2 understand the method of recording cash transactions simple cash boook recording and posting of cash transactions

Debit balance in cash book means __________.

  1. Overdraft as per pass book

  2. Overdraft as per cash book

  3. Credit balance as per pass book

  4. Debit balance as per day book
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The debit balance as per the cash book means the balance of deposits held at the bank. Such a balance will be a credit balance as per the passbook. Such a balance exists when the deposits made by the firm are more than its withdrawals.

Multiple choice elements of accounts subsidiary books - 2 understand the method of recording cash transactions simple cash boook recording and posting of cash transactions

Cash paid to Creditors needed for the construction of cash account can be ascertained from __________________ .

  1. Total creditors account

  2. Trading account

  3. Profit and loss account

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Single-entry accounting is a form of bookkeeping and accounting in which each financial transaction is a single entry in a journal or transaction log. As a result, the accounting system is called, not surprisingly, a single-entry system. And, the approach is also known as single-entry bookkeeping.

In single-entry bookkeeping informations related to accounts are incomplete.
In the given question if the amount of cash paid to creditors needed for the construction of cash account is not given or not available, it can be ascertained from total creditors account.

Multiple choice elements of accounts subsidiary books - 2 understand the method of recording cash transactions simple cash boook recording and posting of cash transactions

The amount listed for cash in the trial balance represents __________________.

  1. The cash at the beginning of the period.

  2. Cash receipts during the period.

  3. Cash receipts minus disbursements during the period.

  4. The balance of cash on the date of trial balance.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A Trial Balance is a statement that states the closing balances of all the accounts at the end of the accounting period. Thus, similar to all the other accounts, the closing balance of cash and bank only appears in the Trial Balance.

Thus, the correct option is D.

Multiple choice elements of accounts origin of transactions - source documents and preparation of vouchers business transactions and source document source documents voucher and transactions

New issue market is an integral part of the _________.

  1. stock exchange

  2. capital market

  3. stock exchange and capital market

  4. discount houses
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The new issue market, also known as the primary market, is where new securities are issued and is a vital component of the capital market.

Multiple choice elements of accounts origin of transactions - source documents and preparation of vouchers business transactions and source document source documents voucher and transactions

Which of the following is NOT a characteristic of perfect competition?

  1. Free entry and exit of the firms

  2. The demand curve of firm is horizontal

  3. The marginal revenue curve is horizontal

  4. An individual firm can influence the price
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

In perfect competition, firms are price takers, meaning they have no power to influence the market price. Options A, B, and C are all standard characteristics of perfect competition.

Multiple choice elements of accounts origin of transactions - source documents and preparation of vouchers business transactions and source document source documents voucher and transactions

What is time of supply of goods liable to tax under reverse charge mechanism?

  1. Date of receipt of goods

  2. Date on which the payment is made

  3. Date immediately following 30 days from the date of issue of invoice by the supplier

  4. Earlier of a/b/c
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Under the Reverse Charge Mechanism (RCM) for goods, the time of supply is determined by the earliest of the date of receipt of goods, the date of payment, or the date immediately following 30 days from the date of issue of the invoice.

Multiple choice elements of accounts origin of transactions - source documents and preparation of vouchers business transactions and source document source documents voucher and transactions

Financial security issued by banks operating outside U.S is classified as ______________.

  1. dollar bonds

  2. euro deposits

  3. Eurodollar market deposits

  4. euro bonds
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Eurodollar market deposits refer to deposits denominated in U.S. dollars held at banks or bank branches located outside the United States.

Multiple choice elements of accounts origin of transactions - source documents and preparation of vouchers business transactions and source document source documents voucher and transactions

_________ is the arrangement of furniture and equipment with the available floor space.

  1. Office accommodation

  2. Office location

  3. Office layout

  4. Open office
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Office layout is defined as the strategic arrangement of furniture, equipment, and workspace to maximize efficiency and flow within an office environment.

Multiple choice elements of accounts origin of transactions - source documents and preparation of vouchers business transactions and source document source documents voucher and transactions

Goodwill, Copyright and Trademarks should be classified as ___________.

  1. Tangible assets

  2. Intangible assets

  3. Current assets

  4. Fictitious assets
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Goodwill, Copyrights, and Trademarks are assets that lack physical substance, which classifies them as intangible assets.

Multiple choice elements of accounts origin of transactions - source documents and preparation of vouchers business transactions and source document source documents voucher and transactions

When marginal is negative, it must be true that _______________.

  1. The average is negative

  2. The average is decreasing

  3. The total is negative

  4. The total is decreasing
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Marginal value is the change in total value. If the marginal value is negative, it means the total value is decreasing with each additional unit.