L216 Basics of Accounting

Transaction includes

• Exchange of money

• Exchange of goods

• trade of goods

• All of the above

Accounting is often referred as

• The grammar of Business

• The language of Business

• The Art of business

• None of the above

Father of Accounting

• Leonardo Da Vinci

• Henry Ford

• Adam Smith

• Luca Pacioli

Which of the following is NOT an asset?

• Building

• salary

• Furniture

• Machine

Which of the following is an expense?

• Wages

• Telephone Bill

• Electric Bill

• All of the above

You bought a chocolate for Rs. 100 and sold it to your friend for Rs. 70. What will be difference of Rs. 30 for you?

• Loss

• Expense

• Income

• Profit

You bought a chocolate for Rs. 100 and sold it to your friend for Rs. 130. What will be difference of Rs. 30 for you?

• Loss

• Profit

• Income

• Expense

You start your business with _______________.

• Income

• Asset

• Capital

• None of the above

When you take out money from Business, it is called _____________.

• Drawings

• Capital

• Loss

• Expense

Which statement consists of Income & Expenses?

• Balance Sheet

• Statement of Profit & Loss

• Cash Flow Statement

• Trial Balance