Question # 1

The favourable balance of profit and loss account should be:

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added in liabilities

subtracted from current assets

Subtracted from liabilities

added in capital

Firms chargers depreciation each year :

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To ensure there is enough money in the firm to replace the asset

To spread the cost of the asset over its working life

Because the law state must be reduced

If you start with cash book favourable balance in Bank Reconciliation Statement which item will be added?

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cheaque deposited but not credit by the bank

Cheques omitted to be deposited into the bank

any amount directly collected by bank on behalf of customer but not recorded in cash book

Debit side cash book was overcast.

A book in which receipts and payments are recorded is known as

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Pass book

Cash book

Purchase book

Sales book

Which of the following account will be credited if business purchased a vehicle on cash?

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vehicle account

cash account

bank account

____ is the detail of transaction in one account provided by the bank

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bank statement

income statement

bank reconciliation statement

The amount of depreciation charged on machinery will be debited to:

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machinery account

depreciation account

cash account

Under the reducing balance method of depreciation :

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Amount of depreciation increase every year

Amount of depreciation remains constant for every year

Amount of depreciationdecrease every year

In an accounting if credit sale < debit side then the balance is known as :

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Negative balance

debit balance

positive balance

credit balance

Which of the following account balance will be shown on debit side of trial balance?

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Cash account

Furniture account

Motor account

all of the above

Which of the following is NOT prepared by Non Profit organization?

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Profit and loss account

Income and expenditure account

Receipts and payments accounts

Balance sheet

Commercial accounting is based on

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Single entry book keeping

Double entry book keeping

Both single and double entry book keeping

cash basic of book keeping

Which of the following financial statement summarizes the profitability of an organization for a particular period?

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Trade and profit & loss account

cash flow statement

balance sheet

Which of the following is not an item of Balance Sheet?

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Accounts receivable

accounts payable

sales revenue

marketable securities

In accounting accumulated depreciation is :

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Treated as reserve

Treated as a contra asset

Treated as surplus

Treated as expense

Cash book is a part of

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Voucher

general ledger

general journal

Trail balance

Cost incurred for the maintenance of the shop is considered as

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Deferred expense

Capital expenses

Revenue expenses

Preliminary expenses

The cost of moving planet and machinery to a new site will be treated as:

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Revenue expenses

Capital expenses

Operating expenses

Administrative expenses

The asset which have limited useful life are termed as :

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Limited assets

Depreciation assets

Unlimited assets

None of the given option

Accrued expenses are the example of

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Current liabilities

Long term liabilities

Capital expenses

Which of the following account will be credited ,if business bought goods on credit from Mr.Ali?

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Purchase account

Mr.Ali account

Cash account

Sale account

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