Tag: introduction to final accounts
Questions Related to introduction to final accounts
All expenses account show ________ balance.
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Debit
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Credit
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Zero
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Negative
Expense account are classified as nominal account. As per the rule of nominal account, all expenses and losses are to be debited.
All personal accounts show ________ balance.
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debit
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credit
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both
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none of the above
Personal Accounts refer to the account of any person which includes artificial person also. Like account of Mr. Shyam, account of ABC & Associates, account of XYZ Pvt Ltd.
Trading & Profit and loss account is also known as __________.
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Income Statement
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Revenue Account
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Fixed Statement
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None
The term Trading and Profit & Loss Account is normally used when the business organization are having the business of trading activity.
Financial Statements are the branch of ____________.
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Book keeping
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Accountancy
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Both
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None
Financial accounting is a specialized branch of accounting that keeps track of a company's financial transactions.
Financial statements are usually prepared at the _______ of financial year.
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End
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Beginning
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Middle
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None of the above
To know the financial position of the business, financial statements are prepared. Normally the financial statements are prepared at the end of the financial year.
If receipt imply an obligation to return money will result in ___________.
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Capital Receipts
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Revenue Receipt
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None
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Both
Receipts can further be classified as revenue receipt and capital receipt.
Name the financial statements prepared by a business ______________.
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Trading account
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Profit and loss account
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Balance sheet
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All of the above
Financial statements is a formal record of the financial activities and position of a business, person or other entity. A business entity uses financial statement to communicate about its financial information with interested parties, includes investors and creditors. The purpose is to reveal the financial position of the enterprise, the result of its recent activities and an analysis of what has been done with earnings.
State whether the following statements are True or False:
Final Accounts are prepared on the basis of Trial Balance.
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True
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False
Yes, the given statement is correct.
Financial statements are prepared on the basis of _________.
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actual events which have already happened
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anticipated events
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future events
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probable events
Accounting is a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information. transactions and events of financial information. Transaction is prepared on the basis of actual events which have already happened.
______ is not available in the Financial Statements of a company.
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Total sales
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Total profit and loss
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Capital
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Cost of production
"Cost of production" is meant the total sum of money required for the production of a specific quantity of output. However, cost of production is not recorded in the financial statements of a company.