Question:

Which one of the following is not a financial statement?

A.

Trial Balance

B.

Profit and Loss account

C.

Balance Sheet

D.

Fund Flow statement

Answer» a. Trial Balance

Question:

Nominal Account represents

A.

Profit & Gain

B.

Loss / Expenses

C.

Both (A) and (B)

D.

None of the above

Answer» c. Both (A) and (B)

Question:

Purchases book is used to record

A.

All purchases of goods

B.

All credit purchases

C.

All credit purchases of goods

D.

All credit purchases of assets other than goods

Answer» c. All credit purchases of goods

Question:

Ledger contains various _______ in it.

A.

transactions

B.

entries

C.

accounts

D.

None of the above

Answer» c. accounts

Question:

The balance of the Petty Cash is a / an

A.

expense

B.

income

C.

asset

D.

liability

Answer» c. asset

Question:

It goods worth 1,750 returned to suppler is wrongly entered in sales returned book as1,570 then

A.

Gross profit will decrease by 3,320

B.

Gross profit will decrease by 3,500

C.

Gross profit will increase by 3,320

D.

Net profit will decrease by 3,140

Answer» a. Gross profit will decrease by 3,320

Question:

Memorandum joint venture account is

A.

Personal Account

B.

Real Account

C.

Nominal Account

D.

None of the above

Answer» c. Nominal Account

Question:

Cash book is a

A.

Subsidiary book

B.

Subsidiary book and a Ledger account

C.

Ledger account

D.

None of the above

Answer» b. Subsidiary book and a Ledger account

Question:

The trial balance checks

A.

Nature of business

B.

Valuation of closing stock

C.

Correctness of cash in hand

D.

Arithmetical accuracy

Answer» d. Arithmetical accuracy

Question:

When preparing a bank reconciliation statement, if you start with debit balance as per cash book cheques sent to bank but not collected should be

A.

Added

B.

Deducted

C.

Not required to be adjusted

D.

None of the above

Answer» b. Deducted