Question 1

Debt notice prepared by the purchase of goods when ____&#10;A)He return the goods&#10;B)He purchases the goods&#10;C)He purchases For credit&#10;D)He purchases for cash

Accepted Answer

He return the goods&#10;

Question 2

_____ from the source document for sales returns&#10;A)Credit note&#10;B)Debit note&#10;C)Sales note&#10;D)Sales return note

Accepted Answer

A Credit Note is issued from the source document for sales returns, indicating that the buyer's account has been credited due to the return of goods.

Question 3

A cashbook which contain only one column is&#10;A)Double column cashbook&#10;B)Three column cashbook&#10;C)Simple cashbook&#10;D)Petty cashbook

Accepted Answer

A cashbook with only one column is referred to as a Simple cashbook. It records transactions involving cash only, without a separate column for bank transactions or discounts.

Question 4

Entries come both on the debit side and credit side of cashbook called&#10;A)Dual entries&#10;B)Contra entries&#10;C)Double column entries&#10;D)Cash entries

Accepted Answer

Contra entries are those entries in which the same account can be both debited and credited in different aspects of a transaction, typically seen in cashbook entries where transactions involve both cash and bank accounts.

Question 5

In cashbooks &#34;C&#34; means&#10;A)Cash&#10;B)Column&#10;C)Credit&#10;D)Contra

Accepted Answer

In cashbooks, "C" stands for Contra, indicating entries that involve transfers between cash and bank accounts within the same organization.

Question 6

Three column cashbook contains&#10;A)Cash ,credit ,bank&#10;B)Cash, discount, bank&#10;C)Cash, petty cash, expenses&#10;D)Cash, bank, income

Accepted Answer

The three-column cashbook typically includes columns for Cash, Discount, and Bank. This allows for recording transactions involving cash payments or receipts, discounts received or given, and bank transactions all in one place.

Question 7

Small payments are entered in&#10;A)Simple cashbook&#10;B)Petty cash book]&#10;C)Double column cashbook&#10;D)Three column cashbook

Accepted Answer

Petty cash book is specifically used for recording small payments, such as office supplies or minor expenses, which are not suitable for recording in the main cash book due to their trivial nature.

Question 8

Imprest system is used in&#10;A)Petty cashbook&#10;B)Simple cashbook&#10;C)Double column cashbook&#10;D)Three column cashbook

Accepted Answer

The Imprest system is specifically used in managing petty cash. It involves keeping a fixed amount of cash on hand for small, routine expenses, and replenishing this amount periodically to maintain the set level. This system is most commonly associated with the petty cashbook, where small transactions are recorded separately from the main cashbook to simplify accounting and improve control over minor expenditures.

Question 9

An error which violates the fundamentals of book keeping is called&#10;A)Errors of omission&#10;B)Errors of amount in original book&#10;C)Compensating error&#10;D)Error of principle

Accepted Answer

Error of principle occurs when an accounting transaction is recorded against the fundamental principles of accounting, thus violating the basic concepts of bookkeeping.

Question 10

Which error does not affect the trial balance&#10;A)Errors of omission&#10;B)Errors of amount in original book&#10;C)Compensating error&#10;D)Error of principle

Accepted Answer

The answer of Which error does not affect the trial...

Question 11

The account to which the difference in the trial balance is temporarily placed , so that the trial balance is made totally, such an account is called&#10;A)Customers account&#10;B)Suspense account&#10;C)Bank account&#10;D)Capital account

Accepted Answer

The answer of The account to which the difference in...

Question 12

Journal entries passed to correct the errors are called&#10;A)Closing entry&#10;B)Opening entries&#10;C)Adjusting entry&#10;D)Rectifying entry

Accepted Answer

The answer of Journal entries passed to correct the errors...

Question 13

Errors cancelled by themselves are called&#10;A)Compensating errors&#10;B)Errors of principle&#10;C)Errors of omission&#10;D)Errors of commission

Accepted Answer

The answer of Errors cancelled by themselves are called&#10;A)Compensating errors&#10;B)Errors...

Question 14

Rs 280 received from Roy is credited to his account as Rs 208,this error is called&#10;A)Compensating errors&#10;B)Errors of principle&#10;C)Errors of omission&#10;D)Errors of commission

Accepted Answer

The answer of Rs 280 received from Roy is credited...

Question 15

A suspense account is created when the _______ of the trial balance does not agree&#10;A)Debit side&#10;B)Credit side&#10;C)Asset side&#10;D)balance

Accepted Answer

The answer of A suspense account is created when the...

Question 16

The balance of trading account is called&#10;A)Balance carried down&#10;B)Net profit&#10;C)Gross profit&#10;D)Suspense account

Accepted Answer

The answer of The balance of trading account is called&#10;A)Balance...

Question 17

Advertisement is a&#10;A)Revenue expense&#10;B)Capital expense&#10;C)Day today expense&#10;D)Deferred revenue expense

Accepted Answer

The answer of Advertisement is a&#10;A)Revenue expense&#10;B)Capital expense&#10;C)Day today expense&#10;D)Deferred...

Question 18

Direct expenses are debited in the&#10;A)Balance sheet&#10;B)Trial balance&#10;C)Profit and loss account&#10;D)Trading account

Accepted Answer

The answer of Direct expenses are debited in the&#10;A)Balance sheet&#10;B)Trial...

Question 19

Adjusted purchase means&#10;A)Purchase&#10;B)Purchase + opening stock&#10;C)Purchase? closing stock&#10;D)Closing stock + opening stock

Accepted Answer

The answer of Adjusted purchase means&#10;A)Purchase&#10;B)Purchase + opening stock&#10;C)Purchase? closing...

Question 20

The main purpose of accounting is to provide financial info to&#10;A)Shareholder&#10;B)Board of directors&#10;C)Tax authorities&#10;D)All of these

Accepted Answer

The answer of The main purpose of accounting is to...

Question 21

Which of the following is an operating expenses&#10;A)Bad debt&#10;B)Salary to manager&#10;C)Depreciation&#10;D)Expired insurance

Accepted Answer

The answer of Which of the following is an operating...

Question 22

Branch stock is always prepared at _______ price&#10;A)Cost&#10;B)Invoice&#10;C)Market price&#10;D)Cost or market price whichever is less

Accepted Answer

The answer of Branch stock is always prepared at _______...

Question 23

Under______ system branch profit or loss is ascertained by preparing branch accounts&#10;A)Debtors&#10;B)Stock and debtors&#10;C)Wholesale&#10;D)Final accounts

Accepted Answer

The answer of Under______ system branch profit or loss is...

Question 24

Goods sent to branch account is closed by transferring the balance to_____ account&#10;A)Branch debtors&#10;B)Branch stock&#10;C)Trading account&#10;D)Branch expenses

Accepted Answer

The answer of Goods sent to branch account is closed...

Deck 26: Accounting and Bookkeeping