Question # 1

Balance sheet is a statement of

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Assets

Both first

Liabilities

None of these

The cheque which is returned by the bank unpaid is called

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Cross cheque

Dishonour cheque

Bearer cheque

Order cheque

Expenses paid in advance are called

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Prepaid expenses

Deferred expenses

Expired expenses

Both prepaid & expired expenses

Cash purchases are recorded in large organizations in

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Purchase day book

General journal

Purchase journal

Cash book

Carriage paid on goods purchased is a

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Direct expense

Opening expense

Indirect expense

General expense

In accounting equation assets are equal to

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Capital

Liabilities

Capital + Liabilities

Errors which affect income statement belong to

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Real A/c

Personal A/c

Nominal A/c

None of these

Which of the following books is called book of original entry:

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Cash book

Journal

Ledger

Sales book

Which of theses assets is an intangible asset

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Building

Cash

Furniture

Good will

Bill receivable and debtor are

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Long term assets

Fictitious assets

Fixed assets

Current assets

The science and art of correctly recording business dealing in a set of books is called

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Book keeping

Auditing

Accounting

Recording

Provision of doubtful debts are also known as:

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Allowances for uncollectable

Allowances for collectable

Bad debts

None

Which one of the following is not a negotiable instrument?

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Cheque

Promissory note

Bill of exchange

None of the above

Material are charged to production at actual cost under

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Weighted average method

FIFO method

LIFO method

Both ii & iii

Which one is not accounting convention?

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Materiality

Full disclosure

Consistency

Going concern

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

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Drawer

Drawee

Payee

Third party

Loss which arises due to ----------- is known as abnormal loss

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Breakage of goods

Leakage

Fire

Shrinkage

What are accrued expenses?

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The expenses that have been incurred during current year and paid till the end of current year

The expenses that have been incurred previous year and paid in the current year

The expenses that have been incurred during current year and not paid till the end of current year

The expenses that have been incurred previous year and not paid till the end of current year

What is accumulated depreciation?

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Depreciation expense of the current year

Sum of all depreciations in different accounting year

Depreciations of previous accounting year

None

Doubtful debts are shown on:

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Profit side of statement of profit and loss

Liabilities side of balance sheet

Asset side of balance sheet

Not shown anywhere

Purchase Requisition is sent to

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Accounts department

Purchase department

Finance department

None of above

Outstanding expenses are also known as

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Prepared expenses

Accrued expenses

Un-earned income

None

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