Question # 1

A document given by the seller to the buyer for credit sale of goods or assets is called

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Cash memo

Invoice

Voucher

None of these

The capital profit should be transferred to:

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Profit and loss account

Trading account

Balance Sheet

Both Trading and profit and loss account and balance sheet

Receipts which are non-recurring by nature:

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Capital receipts

Revenue receipts

Short term receipts

Capital profit

The price of goods sold or services rendered to the customers is called

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Sale

Profit

Expense

Revenue

Wages paid for installing a machine should be debited to

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Wages a/c

Cash a/c

Machinery a/c

none of these

In the preparation of the worksheet the amounts on the trail balance columns are taken directly from

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Journal

Ledger

Trail balance

Transaction

Wages paid for the construction of building is an example of

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Revenue expenditure

Capital expenditure

Recurring expenditure

Short-term expenditure

Debts which are repayable in the course of less than one year bur more than one month are called

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Quick liabilities

Deferred liabilities

Contingent liabilities

Liquid liabilities

The expenses which are incurred for the generation of revenues from the sales of goods are called

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Non-operating expenses

Selling expenses

Operation expenses

Administrative expenses

It is prepared to determine the net profit or net loss

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Trading account

Profit or loss account

Cash book

Balance sheet

The favourable balance of bank statement is

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Credit Balance

Debit Balance

Zero Balance

Both b and c

Which column is prepared in single column cash book?

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Bank Column

Cash Column

Discount Column

All of the Above

Bad debts are

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deferred expenditure

revenue expenditure

capital expenditure

none of these

A bill of exchange is drawn by:

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A debtor

A creditor

A holder

Endorsee

The accrued income or outstanding income will appear in the balance sheet as

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An expense

A liability

An asset

Both a & b

Our cheque to Ali & Bros, returned dishonored should be credited to

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Cheque account

Cash account

Bank account

Ali & Bros account

Income statement is prepared to ascertain the net result of the business concern under

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British accounting system

American accounting system

Cash system of accounting

None of these

.The cash book is a

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Subsidiary journal

Ledger account

Subsidiary journal and ledger

Trial balance

Gross profit equals to

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Net profit minus expenses

Sales minus closing stock

Purchases minus closing stock

Sales minus cost of goods sold

Which one of the following in used to simplify work, to be done at the end of period

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Balance sheet

Income sheet

Bank statement

Work sheet

The credit purchases were wrongly recorded in sales book, the rectification of entry

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Increase the net profit by double amount

Decrease the net profit by double amount

Decrease the net profit

Increase the net profit

Bank reconciliation statement is prepared by

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Banker

Customer's accountant

Auditors

Manager

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