The first step of accountancy is
Journal Entry
Ledger Posting
Balancing of Accounts
Trial Balance
Correct Answer :
A. Journal Entry
Related Questions
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
The account which can never have a credit balance is
Bank
Cash
Debtor
Creditor
Depreciation is not charged on _______________.
New assets
Land
Building
None of the above
Goodwill is not a fictitious asset.
True
False
Sale of Office Furniture should be credited to Sales Account.
True
False
The accounts of a company may be maintained using Single Entry System of Book Keeping also.
True
False
Contingent liability is an ascertained liability but its amount and due date are indeterminate.
True
False
Capital + Long-term liabilities = Fixed Assets + Current Assets + Cash - Current Liabilities.
True
False
Cash payments are recorded on the _______________ of the Cash Book.
Debit side
Credit side
Both sides
Any one side
Cash is an example of
Personal Account
Real Account
Nominal Account
Both (a) and (b)
The basic unit of measurement of the accounting system is ______________.
Money
Finance
Weight
None of the above
E. & O.E.
Errors & Omissions Expected
Error & Omission Expected
Errors & Omissions Entered
Errors & Omissions Excepted
The aggregate of direct material, direct labour and direct expenses is known as
Product Cost
Manufacturing Cost
Prime Cost
Production Cost
The short description of a transaction written at the end of a journal entry is known as _______________.
Summary
Narration
Memo
Info
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)
Fixed Assets are stated in the balance sheet at their market value.
True
False
HUF stands for
Hindu United Family
HIndi Undivided Family
Hindu Undivided Family
Hindu Uniform Family
Any type of error affects the agreement of Trial Balance.
True
False
Bank Reconciliation statement is prepared to arrive at the Bank Balance.
True
False
Capital of the business is an example of external liability.
True
False
Business ventures, which are started for a predefined period, are known as _____________ventures
Joint
Terminal
Treminable
Limited Period
Providing depreciation ensures sufficient cash for asset replacement.
True
False
Copyright is an example of
Real Account
Asset
Intangible Asset
All of the above
The balance in the Cash Book represents net income.
True
False
Mr.Customer purchased goods from Mr.Seller on credit. This is a/an
Event
Transaction
Both (a) and (b)
None of the above
Which of the following equation(s) is(are) true
Assets = Liabilities + Capital
Assets - Capital = Liabilities
Both (a) and (b)
None of the above
The first step of accountancy is
Journal Entry
Ledger Posting
Balancing of Accounts
Trial Balance
An expenditure intended to benefit the current period is revenue expenditure.
True
False
WDV stands for
Written Down Valuation
Write Down Value
Written Down Value
Writing Down Value
Depreciation cannot be provided in case of loss, in a financial year.
True
False