Tag: income-expenditure account

Questions Related to income-expenditure account

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

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. Loan

  2. Overdraft

  3. Deposit

  4. Cash credit

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Correct Option: C
Explanation:

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

Insurance Act came in to effect in _______.

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. 1956

  2. 1972

  3. 1938

  4. None of these

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Correct Option: C
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.

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

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. An event

  2. A transaction

  3. A transaction as well as an event

  4. Neither a transaction nor an event

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Correct Option: A

Which of the following are ways to prove access rights?

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. What you know, like a password

  2. What you have, like an ATM card

  3. What you look like

  4. All of the above

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Correct Option: D

Debit means _________.

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. decrease in asset

  2. increase in liability

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

  4. moderate increase in liability

Show answer
Correct Option: C
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. 

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

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. Expenses Account

  2. Type writer Account

  3. Repairs Account

  4. Services Account

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Correct Option: C
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.

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

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. Journalizing

  2. Utilizing

  3. Posting

  4. Balancing

Show answer
Correct Option: A
Explanation:

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

In life insurance, the risk insured is __________________.

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. 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

Show answer
Correct Option: C
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.

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

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. SBI

  2. RBI

  3. Government

  4. None of these

Show answer
Correct Option: B
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

$1.$ 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.

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. $1$ and $3$ are correct

  2. $2$ and $4$ are correct

  3. $1$ and $4$ are correct

  4. All are correct

Show answer
Correct Option: D
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.