Question # 1

A bank reconciliation statement is prepared by:

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banker

Accountant of the business

Statutory auditors

Rigistar

A Journal is generally kept on:

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A columnar basis

A row basis

A single line basis

Vertical basis

The transaction for which non separate book is maintained are recorded in:

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Journal proper

Bills receivable book

Bills payable book

Cash book

The person to whom bill is transferred will become

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Endorser

Creditor

Debtor

Endorsee

A bill of exchange is drawn by

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Debtor

Creditor

Endorser

Endorsee

When a bill is transferred by the drawer to his creditor, for settlement of his debts, it is called

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Retirement of Bill

Endorsement of a Bill

Discounting of a Bill

Settlement of a Bill

When a drawee honours his acceptance, he will credit

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Capital Account

Drawer Account

Bill Payable Account

Cash Account

The concept of conservation will have the effect of:

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Understatement of assets

Under statement of liabilities

Overstatement of assets

None of the above

The Legal tenor of a bill is

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Sixty Days

One Month

Eighty Days

Ninety Days

When bank column of a cash book shows a credit balance, it means:

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Cash balance

Bank balance

Under draft

Over draft

Which cash is paid or received in an exchange the transaction is called:

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Sale transaction

Cash transaction

Credit transaction

None of the above

When a drawer discounts a bill, he debits

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Bank Account

Interest Account

Drawee Account

Bill Receivable Account

Subsidiary books are called the book of:

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Original entry

Secondary entry

Temporary entry

Basic entry

The act of withdrawing a bill of exchange from circulation when it had been paid before the due date

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Renewal of a Bill

Discounting of a Bill

Endorsement of a Bill

Retiring of a Bill

Retiring a bill under rebate means

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Payment of Bill Before Due Date

Payment of Bill After due date

Discounting of a Bill

Dishonouring of a Bill

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Principles of accounting Icom Part 1 English Medium Chapter 3 Online Test MCQs With Answers

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