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## Question Numbers

• CURRENT QUESTION
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###### 1. An Asset that is NOT physical in nature is called

A

Intangible Asset

B

Liquid Asset

C

Current Asset

D

None of the above

###### 2. The rent paid to landlord is credited to

A

Landlords Account

B

Rent Account

C

Cash Account.

D

None

A

Journal

B

Ledger

C

Ledger posting

D

Voucher

###### 4. The accounts that records expenses, gains and losses are

A

Personal accounts

B

Real accounts

C

Nominal accounts

D

None of the above

###### 5. Credit note is issued by an entity at the time of

A

Purchase return

B

Sales Return

C

Both of (A) & (B)

D

None of the above

###### 6. Debit note is issued by an entity at the time of

A

Purchase return

B

Sales Return

C

Both of (A) & (B)

D

None of the above

A

Transferring

B

Posting

C

Balancing

D

Journalizing

A

Ledger

B

Balance sheet

C

Trial balance

D

Journal

A

Asset

B

Expense

C

Loss

D

All of the above

A

Posting

B

Investigation

C

Calculation

D

Balancing

###### 11. A company issues cheque to pay account payable. The effect of the transaction is to?

A

Increase assets and liabilities

B

Increase assets and decrease liabilities

C

Decrease assets and liabilities

D

Increase assets and stockholders equity

###### 12. The transaction will be treated as a contra entry when?

A

Cash withdrew from bank for personal use

B

Cheque received from customer and deposited

C

Cash drew from bank for office use

D

None of Above

###### 13. When a cheque is received from a customer and it is deposited into the bank for collection but ultimately returned dishonoured, the customer account will be?

A

Debited

B

Credited

C

Becomes a liability

D

None of these

###### 14. The basic purpose of preparing a trial balance is

A

To find out profit of the business

B

To show financial position of the business

C

To test arithmetical accuracy of the ledger

D

To calculate net purchases of the business

###### 15. A trial balance prepared after taking into account the effect of adjusting entries is known as:

A

Financial trial balance

B

C

D

Normal trial balance

###### 16. Which one of the following is the most popular method of preparing a trial balance

A

Balance method

B

Total method

C

Trial and error method

D

Line method

###### 17. Under balance method, which one of the following is used for preparing trial balance at the end of an accounting period?

A

Beginning balances of ledger accounts

B

Ending balances of ledger accounts

C

Total of beginning and ending balances of ledger accounts

D

Difference of beginning and ending balances of ledger accounts

###### 18. Which of the following errors in the journal entry will not be detected by trial balance.

A

Debit part is overstated but credit part is correctly recorded

B

Debit part is correctly recorded but credit part is overstated

C

Both debit and credit parts are overstated by the same amount

D

Debit part is correctly recorded but credit part is understated

###### 19. When closing stock is given in trial balance, then it will affect:

A

Trading and Profit & Loss account only

B

Balance sheet only

C

Owner`s equity only

D

D) Trading and Profit & Loss account and Balance sheet

###### 20. Prepayment of insurance premium will appear in the Balance Sheet and in the Insurance Account respectively as

A

Liability and a debit balance.

B

An asset and a debit balance.

C

An asset and a credit balance

D

A liability and a credit balance