(A) Reduce both Assets and Owner‘s Equity
(B) Reduce Assets and increase Liabilities
(C) Reduce Owner‘s Equity and increase Liabilities
(D) Have no affect on the Balance Sheet
Tag: Financial Accounting Mcqs
Withdrawal of goods from stock by the owner of the business for personal use should be recorded by?
(A) Debiting Stock Account and crediting Capital Account
(B) Debiting Capital Account and crediting Drawings Account
(C) Debiting Drawings Account and Crediting Stock Account
(D) Debiting Stock Account and Crediting Drawings Account
When Fixed Assets are sold?
(A) The Total Assets will increase
(B) The Total Liabilities will increase
(C) The Total Assets will decrease
(D) There is no change in the Total Assets
Goods returned from X is entered as?
(A) Debit X A/c; Credit Purchase Return A/c
(B) Debit X A/c; Credit Cash A/c
(C) Debit Sales Return A/c; Credit X A/c
(D) Debit X A/c; Credit Sales A/c
The process of transfer of entries from day book to ledgers is called __.
(A) Simple posting
(B) Journal posting
(C) Transaction
(D) Ledger posting
In which of the following statement opening stock is shown?
(A) Profit and loss account
(B) Balance sheet
(C) Cash flow statement
(D) Owner‘s equity
Cash Purchases?
(A) Increases Assets
(B) Results in no change in the Total Assets
(C) Decreases Assets
(D) Decrease Liability
The __ in a ledger helps in locating the accounts contained in it?
(A) Folio
(B) Pages
(C) Serial Number
(D) None of these