If the business’s owner withdraws cash for his/her personal use what will be the effect on capital??
A. Increase in capital
B. Remain the same
C. Decrease in capital
D. No effect on capital
Category: Accounting Mcqs
Office equipments account is classified as _________ account??
A. Nominal
B. Real
C. Cash
D. Capital
Credit note is the basis for recording a transaction in which of the following SPECIALIZED journals??
A. Purchase journal
B. Sales return journal
C. General journal
D. Cash receipt journal
Depreciation is calculated on the____________??
A. Cost price of asset
B. Market price
C. Cost Transport Installation expenses
D. Cost or market values whichever is less
What is the basic accounting equation??
A. Capital Liabilities=Assets
B. Assets liabilities =Capital
C. Capital assets=liabilities
D. Liabilities Capital
Goods in stock worth 800 are destroyed by fire and the Insurance Co. is accepted the claim for 600. Adjustment would involve?
A. Debit of 800 to Trading Account and credit of 600 and 200 to insurance company and Profit and Loss Account respectively
B. Deduct the 800 from closing stock in the Trading Account
C. Credit insurance company for 600
D. Debit of 600 and 200 to insurance company and Profit and Loss Account respectively and credit of 800 to Trading Account
Double entry implies that?
A. Recording entries in journal
B. Recording entries in Ledger account
C. Recording two aspects of every transaction
D. Recording every transaction in books
Which of the following is a current liability??
A. Prepaid expenses
B. Trademark
C. Discount on issue of shares
D. Outstanding Salaries
A book wherein various accounts are opened is called____________??
A. Subsidiary books
B. Journal
C. Ledger
D. Trial Balance
Which of the following statement is considered as the accountant’s snapshot of firm’s accounting value as of a particular date??
A. Income Statement
B. Balance Sheet
C. Cash Flow Statement
D. Retained Earning Statement
