Tag: accounting in business

Quizzes (14) Questions (62)

Questions Related to accounting in business

Multiple choice elements of accounts accounting in business meaning and classification of business transactions develop the understanding of recording of transactions in journal illustrations on journal entries

Rs. 15,000 received from Karan has been credited to Ravan. Which of the following rectification entry is correct?

  1. Raven A/c Dr. 15,000

    To Karen A/c 15,000

  2. Karan A/c Dr. 15,000

    To Raven A/c 15,000

  3. Ravan A/c Dr. 15,000

    To Suspense A/c 15,000

  4. Suspense A/c Dr. 15,000

    To Karan A/c 15,000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When Rs 15,000 received from Karan is wrongly credited to Ravan's account, we need to reverse this by debiting Ravan to remove the wrong credit and crediting Karan to give him the correct credit. Option A shows the correct rectification entry. Note there is a typo in the option where 'Karan' appears as 'Karen'.

Multiple choice elements of accounts accounting in business meaning and classification of business transactions develop the understanding of recording of transactions in journal illustrations on journal entries

Which one of the following is called backbone of auditing?

  1. Routine checking

  2. Vouching

  3. Internal check

  4. Internal control
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Vouching is considered the backbone of auditing because it involves verifying the documentary evidence for every transaction, which is the core of an auditor's work.