Question # 1

Net profit is equal to

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Gross profit - expenses

Sales - Cost of goods sold

Sales - expenses

Capital - expenses

Errors which affect one account can be

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errors of principle

errors of posting

errors of omission

none of these

When ban column of a cash book shows a debit balance it means:

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Overdraft as per bank

Unfavourable balance as per cash book

Favourable balance as per cash book

Favourable balance as per pass book

Written below each entry is the

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Transaction

Voucher no

Narration

Date

For every debit, there is a credit

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going concern concept

dual aspect concept

matching concept

cost concept

Any difference in trial balance is transferred to

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sales account

nominal account

purchases account

suspense account

Both cash purchases as well as credit purchases are recorded in

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Cash book

Purchase book

Purchases account

None of these

Record of business transaction in the journal is called

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Detail

Summary

Narration

Entry

The body of worksheet contains

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Two pairs of money column

Three pairs of money column

Four pairs of money column

Five pairs of money column

Premium on issue of shares of a company represents

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capital loss

capital profit

capital payment

none of these

Assets which have no market value are called

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Wasting assets

Fictitious assets

Intangible assets

Tangible assets

In form journal, the first column represents:

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Ledger Folio

Data

Amount

Debit

When cash is withdrawn from the bank for the personal use of the owner, must be debited to

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Cash account

Bank account

Drawings account

Capital account

Journal means

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Weekly

Monthly

Yearly

Daily

The person to whom bill is transferred will become

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Endorser

Creditor

Debtor

Endorsee

An expenditure, which is incurred to increase to profit earning capacity of a business concern, is called

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Deferred expenditure

Current expenditure

Capital expenditure

Recurring expenditure

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