Question # 1

Modern system of book keeping is

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Single entry system

Double entry system

Modern system

None of these

Trial balance is prepared to detect

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Errors of omission

Compensating errors

Errors of commission

Errors of principles

Expenses paid in advance are called

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Prepaid expenses

Deferred expenses

Expired expenses

Both prepaid & expired expenses

The purchase of machinery on account would:

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Increase one asset and decrease another asset

Increase an asset and decrease liability

Increase an asset and increase capital

Increase an asset and increase a liability

Cheque received but not deposited recorded in cash book is

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Cash column

Discount column

Bank column

None of these

The book in which small payments like refreshment tissues etc are recorded is called

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Main cash book

Cash account

Petty cash book

Both main cash book & petty cash book

The process of recording business transactions in the journal is called

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Posting

Classifying

Journalising

Entry

If more than two accounts are involved in one transaction the journal entry is called

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Simple entry

Skeleton entry

Compound entry

Double entry

Journal is prepared in

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Columnar form

Vertical form

Horizontal form

Raw form

Any activity undertaken for the purpose of earning profit is called

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Dealing

Business

Performance

Duties

Balance sheet is a statement of

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Assets

Both first

Liabilities

None of these

The price at which assets will be sold at the end of its useful life is known as:

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Scrap value

Residual value

Written down value

All of the above

Cash or goods taken away by owner for personal use from business are known as:

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Capital

Drawings

Revenue

Expense

If spoiled goods are considered a normal part of production process than debit to

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Work in process

General expense

F.o.H control

None of above

Tenor is the period of time ------------ which a bill becomes payable

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Before

After

Both a and b

None

Statement of a affairs is a sort of -----------

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Profit and loss statement

Nominal account

Statement of changes in equity

Balance sheet

What is negotiable instrument?

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A document which is not transferable

A document which is transferable

A document which is accepted

None

Purchase Requisition is sent to

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Accounts department

Purchase department

Finance department

None of above

Which one is not a functional classification?

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Manufacturing cost

Marketing cost

Finance cost

Mixed cost

Sales prices is calculated as follow:-

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Cost + operating expense

Direct material + Direct labour + F.o.H

Cost + operating expenses + profit

None of above

Profit will be lower where prices are rising under

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FIFO method

LIFO method

Weighted average method

All of the above

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

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Breakage of goods

Leakage

Fire

Shrinkage

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