Cash is an example of
Personal Account
Real Account
Nominal Account
Both (a) and (b)
Correct Answer :
B. Real Account
Related Questions
Wages and Salaries is a charge against
Trading Account
Profit and Loss Account
Profit and Loss Appropriation Account
Balance Sheet
Net Realisable Value of an asset means
The historical cost of the asset
Its sale value as on a particular date
Its written down value as on a particular date
None of the above
An expense incurred to keep the machine in working condition is a capital expenditure.
True
False
E. & O.E.
Errors & Omissions Expected
Error & Omission Expected
Errors & Omissions Entered
Errors & Omissions Excepted
The account which can never have a credit balance is
Bank
Cash
Debtor
Creditor
If the totals of debit and credit columns of a Trial Balance are equal, it implies correctness of books of accounts.
True
False
All events are transactions but all transactions are not events.
True
False
Arrange the steps of accounting in sequential order -
(i) Trial Balance;
(ii) Journal Entry;
(iii) Balancing of Accounts;
(iv) Ledger Posting.
(i),(ii),(iii),(iv)
(ii),(iii),(iv),(i)
(ii),(iv),(i),(iii)
(ii),(iv),(iii),(i)
WDV stands for
Written Down Valuation
Write Down Value
Written Down Value
Writing Down Value
The cost of a machine is Rs.6,00,000. The rate of depreciation is 10%. The depreciation for the 3rd year, on diminishing balance method, is
Rs.60,000
Rs.54,000
Rs.48,600
Rs.43,740
Cash payments are recorded on the _______________ of the Cash Book.
Debit side
Credit side
Both sides
Any one side
According to the Concept of Conservatism, an accountant should
Recognize all losses and anticipate no gains
Recognize all gains and anticipate no losses
Recognize and anticipate both gains and losses
Both (b) and (c)
Mr.Customer purchased goods from Mr.Seller on credit. This is a/an
Event
Transaction
Both (a) and (b)
None of the above
All indirect expenses are charged against
Trading Account
Profit and Loss Account
Manufacturing Account
None of the above
Depreciation is not charged on _______________.
New assets
Land
Building
None of the above
In Double Entry System of Book Keeping, the total of Debit balances may not be equal to the total of Credit balances, in certain situations, even if transactions are recorded correctly.
True
False
Cash is an example of
Personal Account
Real Account
Nominal Account
Both (a) and (b)
Business ventures, which are started for a predefined period, are known as _____________ventures
Joint
Terminal
Treminable
Limited Period
The short description of a transaction written at the end of a journal entry is known as _______________.
Summary
Narration
Memo
Info
Choose the odd one out
Wages
Stationery
Sales
Furniture
Providing depreciation ensures sufficient cash for asset replacement.
True
False
The first step of accountancy is
Journal Entry
Ledger Posting
Balancing of Accounts
Trial Balance
Trial Balance is prepared after the preparation of Profit and Loss Account.
True
False
Goodwill is not a fictitious asset.
True
False
Transfer to General Reserve is a charge against
Trading Account
Profit and Loss Account
Profit and Loss Appropriation Account
Balance Sheet
The aggregate of direct material, direct labour and direct expenses is known as
Product Cost
Manufacturing Cost
Prime Cost
Production Cost
Sale of Office Furniture should be credited to Sales Account.
True
False
WIP stands for
Working Progress
What-in-Progress
Work-in-Progress
Works-in-Progress
Capital of the business is an example of external liability.
True
False
Bank Reconciliation statement is prepared to arrive at the Bank Balance.
True
False