Page 1 : Questions, Carriage inward is shown in _____ Account., Factory expenses are shown in _____ Account., Net profit is _____ to capital., Net loss is _____ from capital., Closing stock appearing in the Trial Balance is shown in _____., Gross profit is transferred to _____ Account., , A, Profit & Loss Account, Balance Sheet, deducted, added, Balance Sheet, Profit & Loss Account, , Prepaid insurance is shown on _____ side of the Balance Sheet., , Liability, , Interest on capital is debited to _____ Account., Trading, Interest on drawings is credited to _____ Account., Balance Sheet, Unwritten off deferred revenue expenses are shown in the Balance Sheet on _____, liability, side., Salary payable is shown in the Balance Sheet on _____ side., asset, Income receivable is shown in the Balance Sheet on _____ side., asset, All indirect expenses are debited to _____ Account., Profit & Loss, Drawings are debited to _____ Account., Interest, Drawings Account shows _____ balance., debit, Interest on investment is shown on credit side of _____ Account., Profit & Loss, Goodwill is not a _____ asset., fictitious, Bank overdraft is a _____., Assets, Carriage inward is shown in _____ A/c., Profit & Loss, Carriage outward is shown in _____ A/c., P & L A/c, Net loss is transferred to _____ A/c., Capital A/c, Gross profit is transferred to _____ A/c., P & L A/c, Prepaid expenses are shown in balance sheet on _____ side., Current Liability, Interest acurued on investment is shown in balance sheet on _____ side., Current Liability, Salary payable is shown in balance sheet on _____ side., Liability, Goods distributed as free sample are credited to _____ A/c., Trading, Balance Sheet is a position statement., true, Profit & Loss Account is a statement of assets and liabilities., true, Goods taken for personal use are reflected in drawings., true, Carriage outward does not appear in the Trading Account., true, Depreciation appears in the Profit & Loss Account., true, Amount due from customers are shown collectively in the Balance Sheet., true, Net profit is a liability of business., true, Wages paid for erection of machinery are debited to Profit & Loss Account., Gross Margin is excess of sales over cost of goods sold., Assets must be equal to liabilities., Every adjustment is recorded twice., Prepaid expenses is a liability., Trading Account always shows debit balance., Capital Account always shows credit balance., Closing stock is valued at cost or at market value whichever is lower., Proprietor is entitled to a salary., RDD is made on debtors after writing off bad debts., Income received in advance is a gain., Final accounts are prepared at the end of each year., Purchase of machinery is debited to Trading Account., Outstanding salary is a nominal account., Current assets are long-term assets., Balance Sheet is an account., , true, true, true, true, true, true, true, true, true, true, true, true, true, true, true, true

Page 2 : Profit & Loss Account shows revenue expenses and losses for the year., Excess of income over expenditure is a net profit., Total assets must be equal to total liabilities., Profit & Loss Account shows financial position of an organisation., Fixed assets are stated in the Balance Sheet at market value., Provision for discount on debtors is calculated after deducting provision for, doubtful debts., Debit balance on Profit & Loss Account is a real asset., If closing stock is not considered, Profit & Loss Account will show less profit., Profit & Loss Account is prepared before preparation of Trial Balance., Assets and liabilities for a particular period are shown in the Balance Sheet., Carriage on purchase of machinery is debited to Trading Account., Balance Sheet is a sheet of expenses and losses., Profit & Loss Account is a statement., Trading Account always shows credit balance., Capital Account always shows credit balance., Drawing reduces capital., Profit decreases capital., Closing stock is always valued at cost or at market value whichever is less., Interest on capital is debited to Profit & Loss Account., Interest on drawings is credited to Profit & Loss Account., Expenses due but not paid appear in the Balance Sheet on asset side., Unearned commission is a liability., Purchase of car is shown on debit side of Trading Account., Outstanding salary is an income., Reserve for discount on debtors shows a credit balance., Current assets are shown in the business for a longer period., Live stock is a current asset., Over valuation of opening stock shows less gross profit., Over valuation of closing stock shows more gross profit., Sale of old furniture is credited to Trading Account., Income received in advance is an asset., Balance Sheet shows profitability of business., Plants means tree plants around the factory., Return outwards in Trial Balance are deducted from, Sales Return in Trial Balance is deducted from, Salaries and wages appear in, Wages and salaries appear in, Outstanding wages in Trial Balance should be shown in, Carriage inward should be shown in, Carriage outwards appearing in Trial Balance should be shown in, Closing stock appearing in Trial Balance should be shown in, Trade mark is a, Drawings are deducted from, For a plastic company plastic is a, Manufacturing Account shows, Discount allowed is shown on, , true, true, true, true, true, true, true, true, true, true, true, true, true, true, true, true, true, true, true, true, true, true, true, true, true, true, true, true, true, true, true, true, true, Sales, Purchases, Trading Account, Trading Account, Trading Account, Trading Account, Trading Account, Trading Account, Current asset, Sales, Raw material, Cost of production, Debit side of Profit &, Loss Account, , WIP indicates, , Partly finished goods, , Manufacturing Account always shows :, Opening stock of finished goods is shown on debit side of, , Debit balance, Trading Account

Page 3 : Goodwill is shown on, , Asset side of Balance, Sheet, , Sale of scrap is shown on, , Credit side of Trading, Account, , Live stock is, Patents and copyright is a, Drawing reduces, For a sugar mill, sugarcane is a, For a sugar mill, sugar is a, WIP in the books of a manufacturer is, , Current asset, Current asset, Capital, Raw material, Raw material, Partly finished goods, , Opening stock of WIP is shown on, , Debit side of Trading, Account, , Closing stock of finished goods is shown on, , Credit side of, Manufacturing Account, , Discount represents, Productive wages are, Closing stock appearing in the Trial Balance is shown on, , Discount allowed, Debited to Trading, Account, Asset side of Balance, Sheet, , Prepaid insurance is, , Deducted from insurance, , Income received in advance is shown on, , Liability side, , Which of the following account is not closed?, , Expenses, , Classification of assets and liabilities as current or long term depends on :, , order of listing in the, ledger, , Cost of goods sold can be computed by adding opening inventory and net, purchases and subtracting :, , Net Sales, , Closing entry for sales discount is, , Sales Discount A/c Dr, To Profit & Loss A/c., , Which income statement format reports income from operations?, , Account format, , Balance Sheet gives information regarding :, , Result of operations, , Closing stock is shown in the Balance Sheet under :, , Goods given as sample should be credited to, Outstanding salaries are shown as, , Fixed assets, Cost of goods sold +, Profit, Expenditure for the, business, Advertisement A/c, An expense, , Income tax paid by a sole trader on his business income should be, , Debited to trading A/c, , Sales are equal to, Interest on drawings is

Page 4 : B, Balance Sheet, Profit & Loss Account, Divided, Divided, Profit & Loss Account, Balance Sheet, , C, Trading, Trading, added, deducted, None of the above, Trading, , D, None of the above, None of the above, None of the above, None of the above, Trading, None of the above, , asset, , Trading A/c debit, , Profit & Loss A/c credit, , Balance Sheet, Trading, , Profit & Loss, Profit & Loss, , All of the above, All of the above, , Current Liability, , asset, , None of the above, , Current assets, Current Liability, Trading, Investment, credit, Trading, fixed, Expenses, Balance Sheet, Trading A/c, Sales A/c, Capital A/c, None of the above, ficitious libility, Fixed asset, P & L A/c, false, false, false, false, false, false, false, , None of the above, liability, Balance Sheet, Capital, None of the above, Balance Sheet, current, liability, Trading A/c, Balance Sheet, Purchase A/c, Sales A/c, Assets, Assets, Current Asests, Balance Sheet, , liability, None of the above, None of the above, None of the above, Opening, None of the above, None of the above, All of the above, All of the above, None of the above, None of the above, Purchase A/c, ficitious libility, None of the above, Fictious assets, None of the above, , false, false, false, false, false, false, false, false, false, false, false, false, false, false, false, false, , Answer, c, c, c, c, a, a, b, c, c, c, d, a, a, c, a, a, a, c, c, a, a, a, c, c, a, a, a, b, a, a, a, a, a, b, a, a, a, b, b, b, a, b, a, b, a, b, b, b, b

Page 5 : false, false, false, false, false, , a, a, a, b, b, , false, false, , a, b, , false, false, , a, b, , false, false, false, false, false, false, false, false, false, false, false, false, false, false, false, false, false, false, false, false, false, false, false, false, Purchases, Sales, Profit & Loss Account, Profit & Loss Account, Profit & Loss Account, Profit & Loss Account, Profit & Loss Account, Profit & Loss Account, Fixed asset, Purchases, WIP, Gross Profit, Debit side of Trading, Account, , b, b, b, b, b, a, a, b, a, a, a, b, a, b, b, a, b, b, a, a, b, b, b, b, b, b, b, a, c, a, b, c, b, c, a, a, , Partly finished repairs, Credit balance, Profit & Loss Account, , Stock, Wages, Balance Sheet, Balance Sheet, Balance Sheet, Balance Sheet, Balance Sheet, Balance Sheet, Fictitious asset, Capital, Finished goods, Net Profit, Asset side of Balance, Sheet, Partly constructed, factory, No balance, Balance Sheet, , Capital, Salary, Trial Balance, None of the above, None of the above, None of the above, None of the above, None of the above, None of the above, None of the above, All of the above, None of the above, Liability side, Raw material, None of the above, All of the above, , a, a, a, a

Page 6 : Credit side of Trading, Account, , Credit side of Profit &, Loss Account, , Debit side of P & L A/c, , Credit side of, Credit side of Profit &, Manufacturing Account Loss Account, , Debit side of P & L, , Fixed asset, Fixed asset, Profit, WIP, WIP, Finished goods, , Intangible asset, Intangible asset, Purchases, Asset, Assets, None of the above, , Fictitious asset, Fictitious asset, Income, Finished goods, Finished goods, Raw material, , Debit side of, Credit side of Profit &, Manufacturing Account Loss Account, , Balance Sheet asset side, , Credit side of Trading, Account, , Credit side of Profit &, Loss Account, , None of the above, , Discount received, Debited to Profit & Loss, Account, Liability side of Balance, Sheet, , Asset, , Liability, , Shown as asset, , None of the above, , Credit side of Trading, Account, , None of the above, , Added to insurance, , Shown on asset side, , (a) and (b), , Asset side, , Debit side of Profit &, Loss Account, Prepaid insurance, , None of the above, Drawings, , Sales discount, , Closing Stock, , Net Purchases, , Sales Discount A/c Dr., To Sales A/c, , Profit & Loss A/c Dr To, Sales Discount, Multiple step format, operating efficiency of, the firm, Current liabilities, Gross profit – Cost of, goods sold, , b, b, b, a, a, c, a, , b, , Interest received, whether they appear on, Relative liquidity of the, Balance Sheet or the, items, income statement., , Single step format, Financial position on a, particular date, Current assets, Cost of goods sold –, Gross profit, , a, , b, a, a, a, d, a, c, , Format of balance sheet, c, , None of the above, None of the above, None of the above, Fictious assets, None of the above, , Expense for the business Gain for the business, , None of the above, , Sales A/c, A liability, , Purchase A/c, An asset, , None of the above, None of the above, , Debited to P & L A/c, , Deducted from capital A/, All of the above, c in the balance sheet, , c, , c, c, b, b, a, c, c, b, , c

Page 7 : Solution, Trading, Trading, added, deducted, Balance Sheet, Profit & Loss Account, asset, Profit & Loss, Profit & Loss, asset, , UnitNumber, 6, 6, 6, 6, 6, 6, 6, 6, 6, , liability, asset, Profit & Loss, Capital, debit, Profit & Loss, fictitious, liability, Trading A/c, P & L A/c, Capital A/c, P & L A/c, Assets, Assets, Liability, Trading, true, false, true, true, true, true, true, , 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, , false, true, true, true, false, false, false, true, false, true, false, true, false, false, false, false, , 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6

Page 8 : true, true, true, false, false, , 6, 6, 6, 6, 6, , true, false, , 6, 6, , true, false, , 6, 6, , false, false, false, false, false, true, true, false, true, true, true, false, true, false, false, true, false, false, true, true, false, false, false, false, Purchases, Sales, Profit & Loss Account, Trading Account, Balance Sheet, Trading Account, Profit & Loss Account, Balance Sheet, Fixed asset, Capital, Raw material, Cost of production, Debit side of Profit &, Loss Account, , 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, , Partly finished goods, Debit balance, Trading Account, , 6, 6, 6, 6

Page 9 : Asset side of Balance, Sheet, Credit side of, Manufacturing Account, Fixed asset, Fixed asset, Capital, Raw material, Finished goods, Partly finished goods, Debit side of, Manufacturing Account, Credit side of Trading, Account, Discount allowed, Debited to Trading, Account, Asset side of Balance, Sheet, (a) and (b), Liability side, Prepaid insurance, Relative liquidity of the, items, Closing Stock, , 6, , 6, 6, 6, 6, 6, 6, 6, , 6, , 6, 6, 6, 6, 6, 6, 6, , 6, 6, , Profit & Loss A/c Dr To, Sales Discount, Multiple step format, Financial position on a, particular date, Current assets, Cost of goods sold +, Profit, Gain for the business, Purchase A/c, A liability, Deducted from capital A/, c in the balance sheet, , 6, 6, 6, 6, 6, 6, 6, 6, , 6