Question # 1

Expenses related to sale of goods are shown in

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Trading account

Profit or loss account

Balance sheet

Sales account

Journal is prepared in

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Columnar form

Vertical form

Horizontal form

Row form

Usually every ______ entry affect both income statement and balance sheet

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Adjusting

Work sheet

Balance sheet

Ledger

A bill from the point of view of a creditor is called a:

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Bill payable

Bill receivable

Bil acceptable

Bill rejectable

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

All cash purchases and cash sales are recorded in

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Cash book

Purchases book

Sales book

Purchases and sales book

The transactions, the effect of which is not exhausted with in the current accounting year are called

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Revenue transaction

Capital transaction

Current transaction

Monetary transaction

Error due to wrong allocation as expenditure between capital and revenue is regarded as:

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Error of omission

Error of principle

Compensating errors

Error of Commission

A schedule of balances of all accounts is called

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Journal

Ledger

Balance Sheet

Trial Balance

A gradual decrease in the value of fixed assets is called

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Reduction

Revaluation

Deprecation

None of these

Sales returns book periodical total is posted to

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Debit of returns inwards account

Credit of returns inwards account

Debit of returns outwards account

Credit of returns outwards account

The balance of the trading account is the transferred to:

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Profit and loss account

Balance sheet

Work sheet

Position statement

Income received in advance during the year is

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Prepaid Expenses

Accrued Income

Advance Expenses

Advance Income

The creditor of the business are called:

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Assets

Liabilities

Capital

Income

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

An expenditure, which is temporarily increase the profit making capacity of the business is called

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Deferred expenditure

Capital expenditure

Revenue expenditure

Non-recurring expenditure

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