| 1 |
When two or more than two error occurred on the opposite side of the account and cancelled the affect of each are called |
- A. Errors of omission
- B. Compensating errors
- C. Errors of commission
- D. Errors of principle
|
| 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
|
| 3 |
If goods purchased from Rahim for Rs. 499, credited to Rehman's account for Rs. 499. this is an |
- A. Error of commission
- B. Error of principle
- C. Compensating error
- D. Error of principle
|
| 4 |
If any income omitted to be recorded it will |
- A. Overstate the profit
- B. Understate the profit
- C. Both a & b
- D. having no effect on profit
|
| 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
|
| 6 |
The process of totaling the data at the end of the period is called |
- A. Posting
- B. Casting
- C. Compensating
- D. Recording
|
| 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
|
| 8 |
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
|
| 9 |
If the balance of suspense account is credit then it will be shown in balance sheet on |
- A. Asset side
- B. Asset and liability side
- C. Asset and capital side
- D. Capital and liability side
|
| 10 |
Error of carry forward will affect |
- A. Personal accounts
- B. Nominal accounts
- C. Impersonal accounts
- D. None of these
|