Question # 1

The act result of the business activities is shown by:

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Profit and loss account

Profit and loss appropriation account

Trading account

Balance sheet

Ahmad's account is an example of

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real account

personal A/c

nominal account

none of these

Accounts relating to persons of firms are called:

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Real accounts

Proprietary accounts

Personal accounts

Nominal accounts

Purchased goods on credit and for cash will affect

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cash & goods

cash & creditors

cash creditors & owner's equity

cash goods and creditors

The accounts of assets and properties

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nominal accounts

real accounts

personal accounts

valuation accounts

Double entry means

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entry in two sets of books

entry at two dates

entry for two aspects of a transaction

recording twice in journal

A dealing between two persons is called a

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business

transaction

purchases

sales

Error due to wrong allocation as expenditure between capital and revenue is regarded as:

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Error of omission

Error of principle

Compensating errors

Error of Commission

Journal shows all necessary information regarding.

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The document

A transaction

The accounting

Meeting

All cash purchases and cash sales are recorded in:

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Sales book

Purchases book

Both a & b

Cash book

A basis of business languages

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accounting

bookkeeping

transaction

cost accounting

The system of recording transaction based on dual concept is called

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Double account system

Double entry system

Single entry system

Management system

Expenses paid by a business decrease

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cash

capital

cash & capital

none of these

Bookkeeping provides the

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primary information

secondary information

final information

insufficient information

An expenditure incurred to the increases the profit earning of the concern is a:

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Revenue expenditure

Current expenditure

Capital receipt

Capital expenditure

The effect of drawing on accounting equation is

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decrease in assets and decrease in liabilities

increase in both assets & liabilities

decrease in assets and increase in capital

none of these

How many categories of accounts are

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two

three

four

five

An expenditure which is incurred again and again is a:

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Capital expenditure

Future expenditure

Deferred expenditure

Revenue expenditure

According to accounting equation, capital is equal to

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assets + liabilities

expenses-incomes

liabilities - assets

assets - liabilities

When cash is paid to creditors it will decrease

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cash

capital

debtor

cash & creditors

The accounts of expenses, incomes, losses and gains

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real accounts

valuation accounts

nominal accounts

personal accounts

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Principles of accounting Icom Part 1 English Medium Chapter 1 Online Test MCQs With Answers

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