1) The process of recording is done

A) Two times a year

B) once a year

C) Frequently during the accounting period

D) At the end of a accounting period

2) General journal is a book of _______ entries

A) First

B) Original

C) Secondary

D) Generic

3) The process of recording transactions in different journals is called

A) Posting

B) Entry making

C) Adjusting

D) Journalizing

4) Every business transaction affects at least ________ accounts

A) One

B) Two

C) Three

D) Infinite
5) Discount allowed is a kind of deduction from

A) Account payable

B) Account receivable

C) Cash account

D) Discount account

6) The other name of journal is

A) Ledger

B) T account

C) Day book

D) Cash book

7) A journal entry in which two or more account is debited or credited is referred as

A) Journal entry

B) Multi entry

C) Additional entry

D) Compound entry

8) The term 2/10-n/30 implies that ______ % discount will be given if the payment is made
within _____ days or full amount is receivable within 30 days

A) 2,10

B) 10,2

C) 10,30

D) 3,15
9) Goods returned by customer should be debited to which of the following accounts?

A) Sales income account

B) Sales account

C) Return inward account

D) Expenses account

10) Discount allowed is

A) Expense of business

B) Income of business

C) Loss of business

D) Abnormal loss of business

11) _________ is the evidence that a transaction took place

A) Source documents

B) Ledger

C) Bonds

D) Journals

12) Which of the following will be debited if a business purchases goods on credit?

A) Cash

B) Debtor

C) Creditor

D) Purchases
13) Which of the following accounts will be debited if the business's owner withdraws cash
from business for his personal use?

A) Drawings

B) Cash

C) Business

D) Stock

14) Journals are also referred as

A) Book of entries

B) Book of original entries

C) T account

D) Books of economic event

15) The standard format of journal does not include which of the following?

A) Assets column

B) Date column

C) Description column

D) Amount column

16) In which of the following orders data is entered in journal?

A) Alphabetical order

B) Numeric order

C) Bullets order

D) Chronological order
17) Which of the following accounts will be credited if a company purchases building for
cash?

A) Capital account

B) Fixed assets account

C) Building account

D) Cash account

18) Discount for quick repayment of debt is normally referred as

A) Trade discount

B) Prompt payment discount

C) Cash discount

D) Bulk discount

19) The first step in accounting process is

A) Recording the transaction

B) Identifying the transaction

C) Posting the transaction

D) Preparing the source documents

20) A chart of accounts generally start with which of the following types of accounts?

A) Assets accounts

B) liability accounts

C) Cash accounts

D) Revenue accounts
Q21. When a Liability is reduced or decreased, it is recorded on the:

Options:

A- Left or credit side of the account

B- Right or debit side of the account

C- Right or credit side of the account

D- Left or debit side of the account

Q 22 Which of the following describes a record of the transaction?

(a) General ledger

(b) Income Statement

(c) Balance Sheet

(d) Journal

Q23. General journal is a book of _______ entries

(a) First

(b) Original

(c) Secondary

(d) Generic

Q24. The other name of journal is

(a) Ledger

(b) T account

(c) Day book

(d) Cash book

Q24. A journal entry in which two or more account is debited or credited is referred as

(a) Journal entry

(b) Multi entry

(c) Additional entry

(d) Compound entry

Q25 The standard format of journal does not include which of the following?

(a) Assets column

(b) Date column

(c) Description column

(d) Amount column

Q26 In which of the following orders data is entered in journal?

(a) Alphabetical order

(b) Numeric order

(c) Bullets order

(d) Chronological order

Q 27 The process of recording transactions in different journals is called

(a) Posting

(b) Entry making

(c) Adjusting

(d) Journalizing
Q28 Which accounts will be debited, If Rohit commenced business with cash?

(a) Cash Account

(b) Drawing Account

(c) Capital Account

(d) Proprietor account

Q29 Which of the following accounts will be debited if the business's owner withdraws
cash from business for his personal use?

(a) Drawings

(b) Cash
(c) Business

(d) Stock

Q31. Which of the following accounts will be credited if a company purchases building for
cash?

(a) Capital account

(b) Fixed assets account

(c) Building account

(d) Cash account

Q 32 Nominal account is classified under

(a) Personal account
(b) Bank account
(c) Impersonal account
(d) None of these

33. Drawings account is classified under…………………..

(a) Real Account
(b) Personal Account
(c) Nominal Account
(d) Impersonal Account
34 Identify the nominal account

A) Machinery account

B) Building account

C) Creditors account

D) Rent expenses account

Ans: D

35) Which of the following accounts can be classified as a real account?

A) Rent expenses account

B) Rent income account

C) insurance expenses account

D) Cash account

Ans: D

36 The origin of transaction is derived from the

(a) Source document
(b) Journal
(c) Accounting Equation
(d) Ledger

37 Goods sold to Mr.A should be debited to

(a) Cash Account
(b) Mr.A Account
(c) Goods Account
(d) Sales Account

38 Purchased goods from Mr.B for cash should be credited to

(a) Purchase account
(b) Goods account
(c) Cash account
(d) Mr.B account
39 Withdrawals of cash from bank by the proprietor for office use should be credited to
(a) Cash account
(b) Bank account
(c) Drawings account
(d) Capital account

40 Purchased goods from Mr.Sharma on credit should be credited to

(a) Purchase account
(b) Goods account
(c) Sales account
(d) Mr.Sharma account

41 An entry is passed in the beginning of each current year is called …………

(a) Opening entry
(b) Closing entry
(c) Original entry
(d) Final entry

42 The liabilities of a business are Rs.30,000, the capital of the proprietor is Rs.70,000. The
total assets are :
(a) 50,000
(b) 1,10,000
(c) 40,000
(d) 1,00,000

43 Business transactions are recorded

(a) in Chronological order
(b) Weekly
(c) At the end of the month
(d) None of the above

44 Which of the following accounts will be credited on giving cash donation?

(a) Donation account
(b) Cash account
(c) Purchases account
(d) Creditors account

45 The journal entry to record sale of services on credit should include

(a) Debit to cash and credit to debtors
(b) Debit to fees income and credit to debtors
(c) Debit to debtors and credit to fees income
(d) None of the above

46. When an entry is made in a journal

(a) accounts to be debited are listed first
(b) accounts to be credited are listed first
(c) accounts may be listed in any order
(d) accounts to be debited are listed second
47. A payment of rupees one thousand to Azad Transporters for bringing a machine to our
factory should be debited to
(a) Azad transporters
(b) Carriage inwards account
(c)Machine account
(d) Cash account

48. Wages of workmen employed for setting up new machinery should be debited to
(a) Expenses account
(b) Wages account
(c) Machinery account
(d) Cash account

49. Goods worth Rs.1000 given as charity should be credited to

(a) Purchase account
(b) Charity account
(c) Donation account
(d) Sales account

50. Loss of goods by fire should be credit to

(a) Loss of goods by fire account
(b) Sales account
(c) Purchase account
(d) Cash account

51 Payment of Rs.100 to Rahim as wages for repairing furniture (purchased) second hand
should be debited to
(a) Furniture
(b) Purchases account
(c) Wages account
(d) Repairs account

52 The basic rule of book keeping, debit the receiver and credit the giver is applicable to?
(a) Real account
(b) Nominal account
(c) Cash account
(d) Personal account

53 Real accounts are related to

(a) Assets
(b) Expenses, Losses and Income
(c) Customers, creditors etc.,
(d) Name of the person, company etc.,

54. Received a cheque from Mr.A should be debited to

(a) Mr.A account
(b) Bank account
(c) Cash account
(d) Personal account
55. Nominal accounts are related to
(a) Assets and Liabilities
(b) Expenses, losses and incomes
(c) Customers, creditors etc.,
(d) cash account