Question # 1

Assets which have no market value are called

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Wasting assets

Fictitious assets

Intangible assets

Tangible assets

An error completely omitted to be entered in the journal

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partial error

error of posting

error of casting

complete error

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

If any expense omitted to be recorded it will

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Overstate the profit

Understate the profit

Both a & b

No effect on profit

When cash is paid to creditors it will decrease

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cash

capital

debtor

cash & creditors

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

Record of business transaction in the journal is called

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Detail

Summary

Narration

Entry

Journal is prepared in

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Columnar form

Vertical form

Horizontal form

Row form

From business point of view, interest on capital is considered as

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An income

An Expense

A Profit

A Liability

Real accounts are related to:

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Assets

Expenses, losses and incomes

Customers, creditors

Incomes

The bad debts which are showed in the trial balance are called

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new bad debts

old bad debts

further bad debts

additional bad debts

Expenditure is revenue expenditure because

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It is intended to benefit the current period

The amount involved is small

It is deducted from the gross sale proceeds

None of these

The statement which contains the explanation of different in cash book and bank statement is known as:

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Bank statement

Cash statement

Balance statement

Bank reconciliation statement

The cash book is a

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Subsidiary Journal

Ledger Account

Subsidiary Journal and Ledger

Trial Balance

The accounts of assets and properties

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nominal accounts

real accounts

personal accounts

valuation accounts

Income tax paid is a

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Business Expense

Business Revenue

Business Liability

Personal Expense

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