11
Ledger is also called . . . . . . . .
A)
principal book of accounts
B)
cash books
C)
subsidiary books
D)
petty cash book
Answer & Solution
Answer: Option
A
12
The fundamental accounting equation, Assets = Equities + liabilities is the formal expression of:
A)
dual aspect concept
B)
matching concept
C)
going - concern concept
D)
money measurement concept
Answer & Solution
Answer: Option
A
13
Which of the following errors are revealed by trial balance?
A)
Omission of an amount from the trial balance
B)
Posting of the wrong amount
C)
Wrong totalling of the book of original entry
D)
None of these
Answer & Solution
Answer: Option
C
14
When a bill is drawn by A on B, it is debited in the books of A to . . . . . . . .
A)
Cash account
B)
B's account
C)
Bills Receivable account
D)
Bills Payable account
Answer & Solution
Answer: Option
C
15
A business entity has assets of Rs. 26,000 and liabilities of Rs. 6,000. Owner's equity in this case is:
A)
Rs. 32,000
B)
Rs. 26,000
C)
Rs. 20,000
D)
Rs. 6,000
Answer & Solution
Answer: Option
C
16
Excess of income over expenditure is shown on the . . . . . . . . side of income and expenditure account.
A)
Credit
B)
Debit
C)
Upper
D)
Lower
Answer & Solution
Answer: Option
B
A)
one account
B)
two account
C)
three account
D)
four account
Answer & Solution
Answer: Option
C
18
When a bill is drawn by A on B and before the date of maturity, B becomes insolvent then in the books of A it is debited to . . . . . . . .
A)
Bills receivable account
B)
Bank account
C)
B's account
D)
Bank for collection of bills
Answer & Solution
Answer: Option
C
19
When an existing company takes over the business of one or more existing companies, it is called . . . . . . . .
A)
amalgamation
B)
absorption
C)
internal reconstruction
D)
None of these
Answer & Solution
Answer: Option
B
20
Both assets and owners equity would be increased by . . . . . . . .
A)
capital brought in
B)
purchase of an asset on credit
C)
payment of creditors
D)
proprietors drawings
Answer & Solution
Answer: Option
A
