Question # 1

If goods purchased from Rahim for Rs. 499, credited to Rehman's account for Rs. 499. this is an

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Error of commission

Error of principle

Compensating error

Error of principle

Adjusting entries affect

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Balance sheet

Income statement

Work sheet

All of them

Cash account is concerned with:

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Real account

Personal account

Nominal account

Capital account

If the error committed in the capital account, it will affect

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trading account

profit & loss account

trading and profit & loss account

balance sheet

Credit purchases are recorded in

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Purchases book

Creditors book

Cash book

Purchases returns book

Errors of affect one account can be

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Errors of principle

Errors of posting

Errors of omission

None of these

Assets which have no market value are called

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Wasting assets

Fictitious assets

Intangible assets

Tangible assets

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

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

It is used to record only cash receipts and payments

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Single column cash book

Double column cash book

Treble column cash book

Sales book

Both cash purchases as well as credit purchases are recorded in

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Cash book

Purchase book

Purchases account

None of these

Wages paid for installing a machine should be debited to

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Wages a/c

Cash a/c

Machinery a/c

none of these

The recording of transaction chronologically in the book of accounts is called:

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Summarizing

Classifying

Recording

None of above

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

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British accounting system

American accounting system

Cash system of accounting

None of these

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

Disagreement in balances may arise owing to mistake or mistakes in the:

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Cash book only

Bank statement

Cash book or bank statement

Bank column of the cash book only

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