(A) Principal book of accounts
(B) Cash books
(C) Subsidiary book
(D) None of these
Tag: Financial Accounting Mcqs
Which of the following is not an Asset?
(A) Stock of stationery
(B) Goodwill
(C) Profit and Loss Account (Credit Balance)
(D) Accounts Receivable
Purchase of Raw Material for Cash?
(A) Increases total Assets
(B) Leaves total Assets unchanged
(C) Increases total Fixed Assets
(D) Increases total Current Assets
Purchase of goods on credit?
(A) Increases Liabilities
(B) Increases Assets
(C) Increases both Assets and Liabilities
(D) Decreases Assets
If the Petty Cash fund is not reimbursed just prior to year end and an appropriate adjusting entry is not made, then?
(A) The petty cash account is to be returned to the company‘s cashier
(B) Expenses are overstated and Cash is understated
(C) Cash is overstated and expenses are understated
(D) Cash is overstated and expenses are overstated
The Periodical total of the Sales Return Book is posted to the?
(A) Debit of Sales Account
(B) Debit of Sales Return Account
(C) Credit of Sales Return Account
(D) Debit of Debtors Account
Trade discount allowed at the time of Sale of goods?
(A) Is recorded in Sales Book
(B) Is recorded in Cash Book
(C) Is recorded in Journal
(D) Is not recorded in Books of Accounts
Which of the following is true?
(A) The payment of a Liability causes an increase in Owner‘s Equity
(B) The collection of an Account Receivable will cause Total Assets to increase
(C) The accounting equation may be stated as: Assets+Liabilities = Owners‘ equity
(D) The purchase of an asset such as office equipment, either for cash or on credit, does not change the Owners‘ Equity