1. Mr.” a ” sold goods for Rs. 300,000 toMr. “ B ”, Rs. 300,000 will be treated as _____________for business of Mr.” A”.

a. Revenue

b. Net profit

c. Gross profit

d. Operating profit

2. Cost incurred for the maintenance of shop isconsidered as _________.

a. Deferred expense

b. Capital expense

c. Revenue expense

d. Preliminary expense

3. Income of the business includes:

a. Cash sales only

b. Credit sales only

c. Credit purchases only

d. Both cash sales and credit sales

4. According to the double entry system of book keeping,the investment of

Rs.10, 000 in the business made by the owner willeffect:

a. Cash Account & Capital Account

b. Cash Account & Expense Account

c. Capita Account & Revenue Account

d. Capital Account & Expense Account

5. What will be the effect on accounting equation, whenpayment is made to the creditor of the business?

a. Increase in an asset and increase in a liability

b. Decrease in an asset and decrease in aliability

c. Increase in an asset and increase in owner's equity

d. Decrease in an asset and decrease in owner's equity

6. When a Liability is reduced or decreased, it isrecorded on the:

a. Right or debit side of the account

b. Left or debit side of the account

c. Left or credit side of the account

d. Right or credit side of the account

7 . Which of the following transaction have NO affect onstockholders' equity?

a. Purchase of building on credit

b. Dividends to stockholders

c. Net loss/Net profit

d. Investment in cash by stockholders

8 . Which of the following is NOT correct?

a. Increase in Assets is Credit

b. Decrease in Expenses is Credit

c. Increase in Liability is Credit

d. Increase in Income is Credit

9. Which of the following is the correct accountingcycle?

a. Occurrence of anEvent—Voucher—Journal---Ledger--- TrialBalance---

Profit & Loss Account --- Balance Sheet

b. Occurrence of an Event—Voucher—Ledger----Journal--- Trial Balance---

Profit & Loss Account --- Balance Sheet

c. Occurrence of an Event—Voucher—Ledger----Journal--- Trial Balance --

Balance Sheet --- Profit & Loss Account

d. Occurrence of an Event—Voucher—Ledger --- TrialBalance----Journal --

Balance Sheet --- Profit & Loss Account

10. Which of the following event is NOT considered asTransaction?

a. Mr. Afnan started business with Rs. 50,000.

b. Mr. Afnan took away goods for worth Rs. 2,000 from thebusiness for personal use.

c. Mr. Afnan paid rent Rs. 2,000

d. Mr. Afnan Submitted a tender for goods worth Rs. 10,000

11. Any mistake in ledger can be easily detected withthe help of which of the following?

a. Trial Balance

b. Income Statement

c. Balance Sheet

d. Journal

12. A summarized record of transactions related toindividuals or things is called a/an ___________.

a. Account

b. Voucher

c. Journal

d. Trial balance

13. The process of transferring journal entryinformation to the ledger is called:

a. Journalizing

b. Posting

c. Balancing

d. Analyzing

24. An accounting system is used by a businessto:

a. Analyze transactions

b. Handle routine bookkeeping tasks

c. Structure information

d. All of the given options

Answer rating: 100% (QA)

1 Revenue Revenue is the total amount of money that a business earns from its sales of goods or services The revenue figure is important for businesse... View the full answer