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


bCash at bank


cBank balance


dCurrent Asset


View Answer Bank overdraft

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


aIncrease


bDecrease


cIncrease or decrease


dAppreciation


View Answer Increase or decrease

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


aRecording


bTransferring


cPosting


dEntry making


View Answer Posting

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


aRent expenses account


bRent income account


cinsurance expenses account


dCash account


View Answer Cash account

Identify the nominal account


aMachinery account


bBuilding account


cCreditors account


dRent expenses account


View Answer Rent expenses account

Double entry implies that Recording entries in journal


aRecording entries in journal


bRecording entries in Ledger account


cRecording two aspects of every transaction


dRecording every transaction in books



Net loss occurs when______________?


aExpenses are greater than Income


bExpenses are less than Income


cExpenses=Income


dLiabilities are greater than income



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


aDepreciation


bDrawings


cOutflow of cash


dAppreciation


View Answer Drawings

Identify the asset from the following:


aCash and cash equivalent


bCreditors


cNotes payable


dBank loan



What is equity?


aCash from the business


bliability of a business


cOwner’s claim on total assets


dOwner’s claim on total liabilities



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