Question:

Life Insurance Corporation Account is a

A.

Nominal Account

B.

Artificial Personal Account

C.

Representative Personal Account

D.

Real Account

Answer» b. Artificial Personal Account

Question:

When Trial Balance will not tally/mismatch?

A.

Two errors those are compensating each other.

B.

A transaction recorded twice.

C.

Taking balance to the wrong side in the Trial balance

D.

If an entry is totally missed.

Answer» c. Taking balance to the wrong side in the Trial balance

Question:

………………….. is the major source of revenue of any business.

A.

Investment

B.

Advances

C.

Loan

D.

Sales

Answer» d. Sales

Question:

The manufacturing account is prepared

A.

to ascertain the cost of goods manufactured.

B.

to ascertain gross profit.

C.

to ascertain profit or loss on the goods manufactur

Answer» a. to ascertain the cost of goods manufactured.

Question:

What happens when a bad debt is recovered?

A.

Current asset decreases

B.

Debtor’s balance decreases

C.

Profit increases

D.

Owner’s fund decreases

Answer» c. Profit increases

Question:

Reduction in value of asset due to its continuous use is treated as

A.

Appreciation

B.

Depreciation

C.

Loss

D.

Profit

Answer» b. Depreciation

Question:

The source document or voucher used for recording entries in Sales Book is

A.

invoice recieved

B.

invoice sent out

C.

credit notes sent out

D.

debit notes received

Answer» b. invoice sent out