Test Your Accounting Skills

The debts owing to others by the business is known as-

liabilities
expenses
debtors
Assets

A written document in support of a transaction is called-

Receipt
Credit Note
Voucher
Debit Note

Assets minus liabilities is.

Drawings
Capital
Credit
Debit

As per the business entity assumption, the business is different from the-

Owners
Banker
Goverment
Assets

Capital + Liabilities=

Drawings
Capital
Credit
Assets

As per dual aspect concept, every business transaction has-

Three Aspects
One Aspect
Two Aspects
Four Aspects

The receiving aspect in a transaction is called as-

Debit Aspect
Credit Aspect
Assets aspect
Liabilities aspect

The Giving aspect in a transaction is called as-

Debit Aspect
Credit Aspect
Assets aspect
Liabilities aspect

Capital account is classified under-

Personal A/C
Real A/C
Nominal A/C
Impersonal A/C

Which of the following is correct? a) Capital

Capital = Assets + Liabilities
Capital = Assets – Liabilities
Assets = Liabilities – Capita
Liabilities= Capital +Assets

Which of the following is not a business transaction?

Bought Computer of 50,000 for business
Paid for salaries of employees 15,000
Paid sons fees from his personal bank account 80,000
Paid sons fees from the business 60,000

The liability arising from the purchase of goods on credit is called-

Creditors
Accounts Receivables
Loan
Accounts Payable

Anticipate no profits and provide for all possible losses. This is essence of which of the following accounting principles-

Dual Aspect Principle
Materiality Principle
Consistency Principle
Conservatism Principle

written in for-

Unfavorable balance means?

Credit balance in the cash book
Credit balance in Bank statement
Debit balance in cash book
Debit balance in petty cash book

Which of the following item is not included in the Cash Book?

Purchases of 10,000
Sales of 50,000
Received cash for Soloman 20,000
Credit sales of 32,000

Cash or goods taken away by the proprietor for his personal use is called-

Drawings
Sales
Charity
Expense

_________ is prepared for showing the financial position of the business summarising its assets and liabilites at a given date.

Statement of profit and loss
Balance sheet
Statement of shareholdeis equity
Fund flow statement.

Which of the following is not a personal account-

Bank Account
Drawings Account
Proprietor’s Account
Livestock Account

Which of the following account should be credited for the goods worth 15,000 withdrawn for personal use?

Sales A/c
Drawings A/c
Purchases A/c
Cash A/c

Which of the following is not a current assets-

Stock
cash
Trade Receivables
Goodwill

The amount invested by the proprietor in a business is called-

Capital
Cash
Creditor
Debtor

Goodwill is a _______

Fictitious Asset
Tangible Asset
Intangible Asset
Expenses

Bank Reconciliation statement is Prepared by-

Creditors
Debtors
Account holder
Bank

Which of the following account will be Debited on giving Cash Donations?

Purchases A/C
Cash A/C
Donation A/C
Drawings A/C

Provision is created for-

Known Liability
Unknown Liability
Strengthening Financial Position
Distribution of Dividend

Internal users of accounting information is –

Owners
Creditors
Government
Bank

Purchases book records-

All cash purchases
All credit purchases
Credit purchases of goods in trade.
None of the above

In Double Entry System of Book-keeping every business transaction affects-

Two accounts
Two sides of the same account.
The same account on two different dates.
All of the above

Which of the following is not a sub-field of accounting?

Management accounting
Cost accounting.
Financial accounting.
Book-keeping.

Call today 800-560-5139 Email us at rezella@mcdonald-bookkeeping.com

Call today 800-560-5139
Email us at rezella@mcdonald-bookkeeping.com