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

Question:

The debts written off earlier as bad, subsequently recovered are

A.

Debited to profit and loss A/c

B.

Credited to bad debt recovery A/c

C.

Credited to trade receivable A/c

D.

Credited to debtors A/c

Answer» b. Credited to bad debt recovery A/c

Question:

Whenever errors are noticed in the accounting records, they should be rectified.

A.

at the time of preparation of Trial Balance.

B.

without waiting the accounting year to end.

C.

after the preparation of final accounts.

D.

in the next accounting year.

Answer» b. without waiting the accounting year to end.

Question:

Accounting does not record non-financial transactions because of

A.

Entity concept

B.

Accrual concept

C.

Cost concept

D.

Money measurement concept

Answer» a. Entity concept

Question:

If a sum of 1,500 received from Laxman (debtor) has not been recorded in the books, the

A.

Profit would show an increase of 1,500

B.

Profit would show a decrease of 1,500

C.

Assets would show a decrease of 1,500

D.

None of the above

Answer» d. None of the above