Question # 1

Goods returned by customers are

Choose an answer

purchases

purchases returns

sales returns

sales

If sales return for Rs. 3,000 were incorrectly included in sales book, gross profit will be

Choose an answer

overstated by Rs. 3,000

understated by Rs. 6,000

understated by Rs. 3,000

overstated by Rs. 6,000

A sale of Rs. 1000 to Farid, was credited to his account, it will affect

Choose an answer

Sales account

Farid account

Cash account

Both a & b

It is prepaid to determine the gross profit or gross loss

Choose an answer

Trading account

Profit or loss account

Balance sheet

None of these

Rent account' is a kind of:

Choose an answer

Real account

Personal account

Nominal account

Capital account

If any expense omitted to be recorded it will

Choose an answer

Overstate the profit

Understate the profit

Both a & b

No effect on profit

Some expenses are incurred at the time of the sate of an asset. The Amount will be debited to:

Choose an answer

Assets account

Expenses account

Cash account

Purchases account

When a drawee honours his acceptance, he will credit

Choose an answer

Capital Account

Drawer Account

Bill Payable Account

Cash Account

Wrong allocation of capital and revenue items of expenses represents

Choose an answer

error of casting

error of principle

compensation error

error of commission

Unfavorable balances mean

Choose an answer

Credit balance in the pass book

Credit balance in the cash book

Debit balance in bank statement

Both b & c

Distinction between capital and revenue items is important for the preparation

Choose an answer

Balance sheet

Trading and profit or loss a/c

Bank reconciliation statement

Both a & b

Income statement is prepared to ascertain the net result of the business concern under

Choose an answer

British accounting system

American accounting system

Cash system of accounting

None of these

Income tax paid is a

Choose an answer

Business expense

Revenue for business

Liability of business

Personal expense

The book in which all cash transaction are primarily recorded is called

Choose an answer

Pass book

Cheque book

Finance book

Cash book

The ______ is not a part of the permanent accounting record

Choose an answer

worksheet

Journal

Ledger

Trail balance

Which book is used to record all cash receipts and cash payments?

Choose an answer

Sale book

Purchase book

Cash book

Petty cash book

More Classes

Other Links

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

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer