Tag: elements of accounts

Questions Related to elements of accounts

Debit balance in cash book means __________.

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

  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

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Correct Option: C
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.

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

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

  1. Total creditors account

  2. Trading account

  3. Profit and loss account

  4. None of the above

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Correct Option: A
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.

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

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

  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.

Show answer
Correct Option: D
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.

New issue market is an integral part of the _________.

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

  1. stock exchange

  2. capital market

  3. stock exchange and capital market

  4. discount houses

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Correct Option: B

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

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

  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

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Correct Option: D

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

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

  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

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Correct Option: D

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

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

  1. dollar bonds

  2. euro deposits

  3. Eurodollar market deposits

  4. euro bonds

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Correct Option: C

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

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

  1. Office accommodation

  2. Office location

  3. Office layout

  4. Open office

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Correct Option: C

Goodwill, Copyright and Trademarks should be classified as ___________.

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

  1. Tangible assets

  2. Intangible assets

  3. Current assets

  4. Fictitious assets

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Correct Option: B

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

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

  1. The average is negative

  2. The average is decreasing

  3. The total is negative

  4. The total is decreasing

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Correct Option: D