Tag: income-expenditure account

Quizzes (0) Questions (86)

Questions Related to income-expenditure account

Multiple choice commercial studies basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

Which of the following is not an advance given by a bank?

  1. Loan

  2. Overdraft

  3. Deposit

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

Deposit is a money deposited by customer in bank for saving.

Multiple choice commercial studies basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

Insurance Act came in to effect in _______.

  1. 1956

  2. 1972

  3. 1938

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Insurance Act, 1938 is a law originally passed in 1938 in British India to regulate the insurance sector. It provides the broad legal framework within which the industry operates.

Multiple choice commercial studies basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

On 31.3.2019 after sale of goods Rs. 2,000, Neelam is left with the closing inventory of Rs. 10,000. This is ____________.

  1. An event

  2. A transaction

  3. A transaction as well as an event

  4. Neither a transaction nor an event
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

An event is a happening that results in a change in the financial position of a business, such as the closing inventory balance, whereas a transaction is an exchange of value.

Multiple choice commercial studies basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

Which of the following are ways to prove access rights?

  1. What you know, like a password

  2. What you have, like an ATM card

  3. What you look like

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Authentication methods typically fall into three categories: something you know (password), something you have (token/card), and something you are (biometrics).

Multiple choice commercial studies basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

Debit means _________.

  1. decrease in asset

  2. increase in liability

  3. an entry on the left hand side of an account

  4. moderate increase in liability
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Debit means left side. For e.g. every accounting entry will have a debit and credit amount. The debit amount is usually listed first and will be entered on the left side of the general ledger account indicated. The general ledger accounts will have both a debit and credit side, left and right side. The balance in a general ledger account will be either a debit balance or a credit balance. 

Multiple choice commercial studies basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

Rs. 500 spent on servicing office type writer should be debited to _________.

  1. Expenses Account

  2. Type writer Account

  3. Repairs Account

  4. Services Account
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Amount spend on normal servicing or repair of any asset is a revenue expenditure and should be debited to repairs account in profit & loss account. Any amount spent which improves the life of any asset, should be capitalized.

Multiple choice commercial studies basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

The process of recording financial transactions in the journal is called ___________.

  1. Journalizing

  2. Utilizing

  3. Posting

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

All business transactions are to be first recorded in journal in chronological order. Process of recording the transaction is called journalizing.

Multiple choice commercial studies basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

In life insurance, the risk insured is __________________.

  1. certain to occur and also the timing of its occurrence is known

  2. certain to occur but its timing of occurrence is not known

  3. not certain to occur and also the timing of its occurrence is not known

  4. not likely to occur
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Life insurance are taken to cover up the unforeseen and untimely event occurs during the life time. Life insurance companies provide the coverage of life of the insurer by taking an insurance premium. Life cover are taken to have future security in case of untimely and unforeseen circumstances.

Multiple choice commercial studies basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

A bank can open a branch only at the permission of the _______.

  1. SBI

  2. RBI

  3. Government

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Ans :-

Banks have to apply to RBI for set-up of new branches. 
RBI has strict guidelines about the same keeping multiple factors in mind - type of bank, financial inclusion being done, location, density of banking needed etc

Multiple choice commercial studies basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

$1.$ Providing only for the holding company's share of unrealised profit is more popular.
$2.$ The holding company's share of the unrealised profit should be reduced from the stock on the asset's side of the consolidated Balance Sheet
$3.$ The holding company's share of unrealised profit should be reduced from the profit and loss account on the liabilities side of the consolidated Balance Sheet.
$4.$ The approach of making a provision for the entire profit included in the stock is preferred by the American Institute of Certified Public Accountants (AICPA)
Of these.

  1. $1$ and $3$ are correct

  2. $2$ and $4$ are correct

  3. $1$ and $4$ are correct

  4. All are correct
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Because

1. In order words, for you to realize profits from an investment you've made, you  Popular Stocks . Because you would still be holding on to all of your 1,000 shares, you .To learn more about profit realization and its implications for ... This unrealized gain would become realized only if you sell the security.
2.In short, holding company's share of unrealized profit should be deducted from the Consolidated Stock in the assets side of the Consolidated Balance Sheet ... of Goodwill will be reduced by the amount of increased value of paid-up shares.
3.In short, holding company's share of unrealized profit should be deducted from the Consolidated Stock in the assets side of the Consolidated Balance Sheet and the same amount should also be deducted from the Profit and Loss Account in the Consolidated Balance Sheet.
4.The American Institute of CPAs (AICPA) is a non-profit organization of Certified Public Accountants. Learn which job is right for you: salary, personality, skills, certifications etc. in the United States. It was established in 1887, and its role is to create and grade the Certified Public Accountant (CPA) examinations.