Question # 1

Written below each entry is the

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Transaction

Voucher no

Narration

Date

According to accounting equation, capital is equal to

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assets + liabilities

expenses-incomes

liabilities - assets

assets - liabilities

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

Discount deducted from the catalogue or list price is called:

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Trade discount

Cash discount

Catalogue discount

Credit discount

Net loss is always

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Equal to gross loss

More than gross loss

Less than gross loss

None of these

Subsidiary books are called the book of:

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Original entry

Secondary entry

Temporary entry

Basic entry

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

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

The debts, the recovery or realization of which is uncertain are known as

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Bad bets

Doubtful debts

Provision for doubtful debts

Loan

If any income omitted to be recorded it will

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Overstate the profit

Understate the profit

Both a & b

having no effect on profit

The person to whom bill is transferred will become

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Endorser

Creditor

Debtor

Endorsee

Raw material destroyed in fire represents

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capital loss

revenue loss

normal loss

both b, c

Net sales are equal to sales minus

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Returns inwards

Returns outwards

Cost of goods sold

carriage on sales

The excess of credit column over debit column in income statement is called

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Net loss

Net profit

Cash balance

Gross profit

Which book is used to record all credit purchases?

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Purchases book

Purchases book return

Cash book

Debit note book

A transaction is recorded on the same days as its takes place, so journal is also called:

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A day book

A history book

An entry book

Ledger book

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