Question # 1

The process of recording business transactions in the journal is called

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Posting

Classifying

Journalising

Entry

Carriage paid on purchase of furniture is a

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Revenue expenditure

Capital expenditure

Revenue Loss

Capital loss

Trail balance shows

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Complete accuracy

Arithmetical accuracy

Whole accuracy

Full accuracy

Cash sales are recorded in

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Sales book

Purchase book

Cash book

Pass book

Goods returned by a customer should be debited to

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Sales A/c

Customer A/c

Purchase A/c

Sales return A/c

Important types of ledger are

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General ledger

Proprietor ledger

Creditors ledger

General ledger & creditor ledger bot

Bad debt arises from

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Sale on account

Account receivable

Cash sales

Account payable

Errors which affect income statement belong to

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Real A/c

Personal A/c

Nominal A/c

None of these

The modern system of book keeping is based on:

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Double account system

Single entry system

Single account system

Double entry system

The cheque which is returned by the bank unpaid is called

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Cross cheque

Dishonour cheque

Bearer cheque

Order cheque

The book meant for recording all cash transactions is called

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Purchase book

Cash book

Sales book

Pass book

Which one of the following is not a negotiable instrument?

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Cheque

Promissory note

Bill of exchange

None of the above

Any written evidence of a business transaction is known as

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Voucher

Pay-in-slip

Debit note

Credit note

The cost of holding the stock in storage is called

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Ordering cost

Material cost

Caring cost

All of the above

Which one is not a functional classification?

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Manufacturing cost

Marketing cost

Finance cost

Mixed cost

The objective of financial accounting is to ascertain:

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True results of profit

True results of loss

True results of profit or loss

None

Under perpetual inventory system stock taking is under taken at the

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Start of the accounting year

End of the accounting

Regular bases

None of above

Dishonor of the bill occurs when:

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The drawer refuse to pay

The acceptor refuses to meet the bill on due date

The endorsee accepts to meet the bill

None

Provision of doubtful debts are also known as:

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Allowances for uncollectable

Allowances for collectable

Bad debts

None

Treble column cash book has three columns of:

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Cash, bank and discount

Income, expense and bank

Cash, bank and profit or loss

None

In bill of exchange, the party who accepts a bill is known as:

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Drawer

Drawee

Payee

Third party

Depreciation is a loss due to wear and tear of an asset.

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Correct

Incorrent

May be

None

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