Accounting Mcqs

Page No. 63

If credit side of a bank account is greater than the debit side, it indicates which of the following?


aBank overdraft

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bCash at bank

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cBank balance

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dCurrent Asset

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View Answer Bank overdraft

An account records the ___________ in the balance of an item?


aIncrease

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bDecrease

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cIncrease or decrease

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dAppreciation

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View Answer Increase or decrease

Transferring entries from journal to ledger account is commonly known as____________?


aRecording

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bTransferring

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cPosting

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dEntry making

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View Answer Posting

Which of the following accounts can be classified as a real account?


aRent expenses account

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bRent income account

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cinsurance expenses account

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dCash account

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View Answer Cash account

Identify the nominal account


aMachinery account

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bBuilding account

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cCreditors account

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dRent expenses account

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View Answer Rent expenses account

Double entry implies that Recording entries in journal


aRecording entries in journal

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bRecording entries in Ledger account

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cRecording two aspects of every transaction

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dRecording every transaction in books

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Net loss occurs when______________?


aExpenses are greater than Income

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bExpenses are less than Income

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cExpenses=Income

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dLiabilities are greater than income

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_______ the withdrawal of cash and goods by the owner of the busienss for his/her personal use?


aDepreciation

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bDrawings

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cOutflow of cash

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dAppreciation

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View Answer Drawings

Identify the asset from the following:


aCash and cash equivalent

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bCreditors

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cNotes payable

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dBank loan

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What is equity?


aCash from the business

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bliability of a business

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cOwner’s claim on total assets

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dOwner’s claim on total liabilities

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