Deck 26: Accounting and Bookkeeping

Question 1

Debt notice prepared by the purchase of goods when ____

A)He return the goods
B)He purchases the goods
C)He purchases For credit
D)He purchases for cash

Answer 1

He return the goods

Question 2

_____ from the source document for sales returns

A)Credit note
B)Debit note
C)Sales note
D)Sales return note

Answer 2

Credit note

Question 3

A cashbook which contain only one column is

A)Double column cashbook
B)Three column cashbook
C)Simple cashbook
D)Petty cashbook

Answer 3

Simple cashbook

Question 4

Entries come both on the debit side and credit side of cashbook called

A)Dual entries
B)Contra entries
C)Double column entries
D)Cash entries

Question 5

In cashbooks "C" means

A)Cash
B)Column
C)Credit
D)Contra

Question 6

Three column cashbook contains

A)Cash ,credit ,bank
B)Cash, discount, bank
C)Cash, petty cash, expenses
D)Cash, bank, income

Question 7

Small payments are entered in

A)Simple cashbook
B)Petty cash book]
C)Double column cashbook
D)Three column cashbook

Question 8

Imprest system is used in

A)Petty cashbook
B)Simple cashbook
C)Double column cashbook
D)Three column cashbook

Question 9

An error which violates the fundamentals of book keeping is called

A)Errors of omission
B)Errors of amount in original book
C)Compensating error
D)Error of principle

Question 10

Which error does not affect the trial balance

A)Errors of omission
B)Errors of amount in original book
C)Compensating error
D)Error of principle

Question 11

The account to which the difference in the trial balance is temporarily placed , so that the trial balance is made totally, such an account is called

A)Customers account
B)Suspense account
C)Bank account
D)Capital account

Question 12

Journal entries passed to correct the errors are called

A)Closing entry
B)Opening entries
C)Adjusting entry
D)Rectifying entry

Question 13

Errors cancelled by themselves are called

A)Compensating errors
B)Errors of principle
C)Errors of omission
D)Errors of commission

Question 14

Rs 280 received from Roy is credited to his account as Rs 208,this error is called

A)Compensating errors
B)Errors of principle
C)Errors of omission
D)Errors of commission

Question 15

A suspense account is created when the _______ of the trial balance does not agree

A)Debit side
B)Credit side
C)Asset side
D)balance

Question 16

The balance of trading account is called

A)Balance carried down
B)Net profit
C)Gross profit
D)Suspense account

Question 17

Advertisement is a

A)Revenue expense
B)Capital expense
C)Day today expense
D)Deferred revenue expense

Question 18

Direct expenses are debited in the

A)Balance sheet
B)Trial balance
C)Profit and loss account
D)Trading account

Question 19

Adjusted purchase means

A)Purchase
B)Purchase + opening stock
C)Purchase? closing stock
D)Closing stock + opening stock

Question 20

The main purpose of accounting is to provide financial info to

A)Shareholder
B)Board of directors
C)Tax authorities
D)All of these

Question 21

Which of the following is an operating expenses

A)Bad debt
B)Salary to manager
C)Depreciation
D)Expired insurance

Question 22

Branch stock is always prepared at _______ price

A)Cost
B)Invoice
C)Market price
D)Cost or market price whichever is less

Question 23

Under______ system branch profit or loss is ascertained by preparing branch accounts

A)Debtors
B)Stock and debtors
C)Wholesale
D)Final accounts

Question 24

Goods sent to branch account is closed by transferring the balance to_____ account

A)Branch debtors
B)Branch stock
C)Trading account
D)Branch expenses