Tag: elements of book keeping and accountancy

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Questions Related to elements of book keeping and accountancy

Multiple choice elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

Income Tax Liability of a Proprietor paid should be debited to ________.

  1. Income Ta Account

  2. Drawing Account

  3. Income Tax Payable Account

  4. Business Expenses Account
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Income tax is a personal expense of the proprietor. When paid by the business, it is treated as a drawing.

Multiple choice elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

Which account is the odd one out?

  1. Advance to supplier

  2. Bills Receivable

  3. Debtors

  4. Cash
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Advance to supplier, bills receivable, and debtors are all receivables (assets). Cash is a liquid asset, but the others are specifically receivables.

Multiple choice elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

Which account is the odd one out?

  1. Work-in progress

  2. Capital Work-in progress

  3. Technical know-how

  4. Patents
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Work-in-progress is a current asset (inventory). Capital work-in-progress, technical know-how, and patents are non-current/fixed assets.

Multiple choice elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

Rent paid to Ram (landlord), it should be credited to __________.

  1. Rent A/c

  2. Ram

  3. Landlord A/c

  4. Cash A/c
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The accounting entry will be :

Rent A/c   Dr.     
  To Ram   A/c
(Being rent paid to ram)
  • Here Rent paid will be credited in Ram's account.

Multiple choice elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

Which account is the odd one out?

  1. Interest Received A/c

  2. Interest Receivable A/c

  3. Interest Outstanding A/c

  4. Unaccrued Interest A/c
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Interest received is a nominal account (revenue). The others are representative personal accounts (accruals/deferrals).

Multiple choice elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

Cash Embezzlement Account is _______________.

  1. An Asset Account

  2. A Liability Account

  3. A Revenue Account

  4. An Expense Account
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Cash embezzlement is a loss to the business, which is recorded as an expense.

Multiple choice elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

Which account is the odd one out?

  1. Land

  2. Building

  3. Furniture

  4. Machinery
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Land is a non-depreciable fixed asset. Building, furniture, and machinery are all depreciable fixed assets.

Multiple choice elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

The return of goods by a customer should be debited to ________________.

  1. Return Outward Account

  2. Carriage Inward Account

  3. Customer's Account

  4. Return Inward Account
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

When a customer returns goods, it is a sales return, which is recorded in the Return Inward Account.

Multiple choice elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

Closing balance of cash book is _____________ balance.

  1. Debit

  2. Credit

  3. Zero

  4. Either (A) or (C)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Total of the debit side of the cash book or cash A/c always exceeds its credit side because payments of a business cannot exceed the receipts amount. So, the cash book shows debit balance. When payments are exactly equal to the receipt of the business, it will show zero balance, but it can never show the credit balance. Thus, the cash book will always show debit balance or zero balance.

Multiple choice elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

Credit balance of bank account in cash book shows ______________.

  1. Overdraft

  2. Cash deposited in our bank

  3. Cash withdrawn from bank

  4. None of the above
Reveal answer Fill a bubble to check yourself
B 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.