Quiznetik

Fundamentals of Accounting | Set 3

1. Accounts payable normally has ……………………….. balnce.

Correct : A. Credit

2. Interest on drawings is …………………………….. for the business.3

Correct : C. Gain

3. Loss leads to reduction in …………………………………..

Correct : B. Capital

4. Petty expenses paid in cash are recorded in:

Correct : C. Petty cash book

5. Current assets does not include :

Correct : D. Furniture

6. Stock is ……………………………………….

Correct : B. Current asset

7. All of the following have debit balance except:

Correct : A. 6% debentures

8. Salary and wages is debited to:

Correct : B. P/L account

9. Wages and salary is debited to:

Correct : A. Trading account

10. Journal proper records ……………………………

Correct : C. Purchase of asset on credit

11. Land & building is a …………………………………

Correct : A. Fixed asset

12. Which of the following account will have credit balance?

Correct : A. Bank over draft

13. Three column cash book records …………………………

Correct : C. Cash bank and discount transactions

14. Trial balance is prepared according to :

Correct : B. Balance method

15. A person who owes money to the business is a …………………………

Correct : A. Debtor

16. A ……………………….. is person to whom business owes money.

Correct : B. Creditor

17. ………………………….denote goods brought for sale.

Correct : C. Purchase

18. Assets acquired for long use in the business are called ………………….

Correct : A. Fixed assets

19. …………….. is an example of wasting asset

Correct : C. Mines

20. Assets acquired for short term use in the business are called……………..

Correct : B. Current assets

21. ………………….. is the major source of revenue of any business.

Correct : D. Sales

22. ……………….. refers the amount invested by the owner into business.

Correct : C. Capital

23. Aseets having definite shape and physical existensce are called……….

Correct : A. Tangible asset

24. Assets which get exhausted to the extent of extraction are called ……….

Correct : C. Wasting asset

25. ……………. are liabilities which become due and payable within a short period.

Correct : C. Current liabilities

26. ……………….. is an example for fictitious asset.

Correct : D. Preliminary expenses

27. ……………… is the collection of all accounts.

Correct : D. Ledger

28. …………………… is the book of original entry.

Correct : A. Journal

29. The process of ascertaining the balance of a particular account on a given date is :

Correct : C. Balancing