| 1 |
Transportation cost paid for the purchases of Machinery must be debited to |
- A. Transportation cost account
- B. Purchases account
- C. Machinery account
- D. Cash account
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| 2 |
If there is any error in Bank account it will affect |
- A. Trading and profit and loss account
- B. Profit and loss account
- C. Trading account
- D. Balance sheet
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| 3 |
Wages paid for the erection of machine debited to wages account is an example of |
- A. Error of omission
- B. Error of commission
- C. Error of principle
- D. None of these
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| 4 |
Errors of affect one account can be |
- A. Errors of principle
- B. Errors of posting
- C. Errors of omission
- D. None of these
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| 5 |
The credit purchases were wrongly recorded in sales book, the rectification of entry |
- A. Increase the net profit by double amount
- B. Decrease the net profit by double amount
- C. Decrease the net profit
- D. Increase the net profit
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| 6 |
Errors, which do not affect on profit calculation, will have an effect only on |
- A. Trail balance
- B. Balance sheet
- C. Profit or loss account
- D. Trading account
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| 7 |
If a transaction has been completely omitted from the Journal it will be considered |
- A. Error of commission
- B. Error of principle
- C. Error of omission
- D. None of these
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| 8 |
The process of totaling the data at the end of the period is called |
- A. Posting
- B. Casting
- C. Compensating
- D. Recording
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| 9 |
A sale of Rs. 1000 to Farid, was credited to his account, it will affect |
- A. Sales account
- B. Farid account
- C. Cash account
- D. Both a & b
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| 10 |
Error of principle arises when |
- A. Any transaction is incorrectly recorded, either wholly or partially
- B. Any transaction is left wholly or partially
- C. Any transaction is affects one account
- D. Any transaction is recorded in fundamentally incorrect manner
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