_________ is the evidence that a transaction took place?

A. General journal
B. Cash journal
C. Purchase journal
D. Sales return day book

Which of the following can be considered as the most important phase of accounting cycle and it is the primarily objective of financial accounting?

A. Identifying transactions
B. Preparing “T Accounts”
C. Preparing financial statements
D. Preparing trial balances

A. 0.65
B. 0.35
C. 1.50
D. 5.29

Which of these documents is not required for Bank Reconciliation?

A. Bank column of Cash Book
B. Bank Pass Book
C. Bank Statement
D. Trial Balance

A. Drawings
B. Bad debts
C. Accrued expenses
D. Reserve for discount on Sundry Creditors
Profit and Loss Account is an income statement which depicts all incomes/gains and
expenses/losses during an accounting period. Drawings are neither an income nor an expense to be recorded in Profit and Loss Account. Thus A. is the correct answer. The items in other alternatives are either expenses or accrued expenses or probable income of discount on sundry creditors. The depreciation, bad debts and provision for doubtful debts and accrued expenses appear in the Profit and Loss Account and provision for income i.e., provision for discount on sundry creditors. Hence A. is the correct answer.