Question # 1

How many categories of accounts are

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two

three

four

five

______ must be prepaid for testing ledger accounts, adjusting entries and financial statement

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Work sheet

Balance sheet

Bank statement

Trail balance

Bill receivable account is a:

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Nominal account

Personal account

Real account

Expenses account

Any expenditure incurred to increase the earning capacity of a business

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capital expenditure

capital loss

revenue loss

revenue expenditure

The document evidencing cash receipts and payments and forming the basis for making entries in the cash book is called:

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Receipt voucher

Payment voucher

Cash voucher

Cash memo

A bank reconciliation statement is prepared by:

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banker

Accountant of the business

Statutory auditors

Rigistar

If a liability is recorded as income, it will be considered as

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Error of commission

Error of omission

Error of Principle

None of these

An expenditure, which is temporarily increase the profit making capacity of the business is called

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Deferred expenditure

Capital expenditure

Revenue expenditure

Non-recurring expenditure

Accommodation bills are drawn accepted and endorsed

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Without any Consideration

for some Consideration

for Quarter Consideration

none of the above

The favorable balance of cash book bank column is

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Credit balance

Debit balance

Both debit and credit balance

None of these

Bad debts are

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Deferred expenditure

Revenue expenditure

Capital expenditure

None of these

The owner wquity in a company is commonly called.

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Shareholder equity

promotors equity

Directors equity

None of these

Income and expenditure account shows.

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Surplus or deficit

Not profit or net loss

Capital account

Cash in hand

On the admission of a new partneer the decreasein the value of assets is debited to.

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Revaluation account

Assets account

Old parner's capital account

New partner capital account

The company formed by teh means of Royal Charter is called.

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Public limited company

Private limited company

Charterd company

Registered company

A partner does not take an acitive partner is the managment firm is called.

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Active partner

Sinior partner

Darment of sleeping partner

Nominal partner

A prospectus for subscription of shares can be issued only by.

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Public company

A private company

Both public and private company

None of these

Joint stock company is an Artificaial person created by

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Law

Federal Govt

Registrar

Employees

For the firm, interest on drawing is.

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Expense

Income

Liability

None of these

Interest on dividend is paid.

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At the end of financial period

During the fiancancial year

At the time of incorporation

At the time of winding of company

Under the diminishing balance method the depreciationis calculated on .

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Book value

Original value

Residual value

None of these

In the absence of any agreement Reserve on dissolution of a partnership firm is credited to the partners.

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In capital ratio

In profit sharing ratio

Equality

None of these

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