Tag: meaning and importance of ledger

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Questions Related to meaning and importance of ledger

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 in Suppliers A/c

  2. Advance from Customers A/c

  3. Provision for Doubtful Debts A/c

  4. Provision for Depreciation A/c
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Advance in suppliers, advance from customers, and provision for doubtful debts are all related to external parties or receivables. Provision for depreciation is a contra-asset account specifically related to 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

Which account is the odd one out?

  1. Creditors

  2. Stock of Raw-materials

  3. Debtors

  4. Stock of Finished Goods
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Stock of raw materials, debtors, and stock of finished goods are all assets. Creditors are a liability, making them the odd one out.

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. Ram's A/c

  2. Ram & Sons A/c

  3. Ram & Sons Ltd A/c

  4. ICICI Bank A/c
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Ram's account is a personal account of an individual. Ram & Sons, Ram & Sons Ltd, and ICICI Bank are all legal entities or artificial persons.

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

Loan from Mahesh 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
B Correct answer
Explanation

A loan taken from someone is an obligation to repay, which constitutes a liability for the business.

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 A/c

  2. Outstanding Interest A/c

  3. Advance Interest A/c

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

Outstanding, advance, and accrued interest are all representative personal accounts (accruals/deferrals). Interest account is a nominal 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

Bank Interest charged 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

Bank interest charged is a cost incurred by the business for using banking services, thus it is 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. Goodwill A/c

  2. Patents A/c

  3. Technical know-how A/c

  4. Work-in progress
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Goodwill, patents, and technical know-how are intangible assets. Work-in-progress is a current asset (inventory).

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 odd one out?

  1. Provision for Doubtful Debts A/c

  2. Provision for Discount on Debtors A/c

  3. Reserve for Discount Creditors A/c

  4. Provision for Depreciation Account
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The first three are provisions/reserves related to debtors or creditors. Provision for depreciation is related to 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

Which account is the odd one out?

  1. Bad Debts Account

  2. Bad Debts Recovered Account

  3. Goods destroyed by fire A/c

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

Bad debts, goods destroyed by fire, and embezzlement are all losses/expenses. Bad debts recovered is a gain or income.

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.