Re-Mock POA Paper-1

The basic rule, debit what comes in and credit what goes out is applicable to

• Personal accounts

• Natural personal accounts

• Nominal accounts

• Real accounts

The claim of the outsiders against the assets of the business is called

• Loans

• Sundry Creditors

• Liabilities

• Capital

The basic rule of bookkeeping debit the receiver and credit the giver

• Personal accounts

• Real accounts

• Nominal accounts

• Valuation accounts

If an account shows a debit balance, it represents

• Income

• Expense

• Liability

• Capital

Discount received is a

• Asset

• Liability

• Revenue

• Expenses

Rent, Salaries, and Wages paid are

• Real accounts

• Personal accounts

• Nominal accounts

• None of these

Purchase machinery on account will be credited to

• Creditor account

• Purchase account

• Furniture account

• Cash account

In a service-type business, revenue is considered earned

• at the end of the month

• at the end of the year.

• when the service is performed.

• when cash is received.

Expenses paid and recorded as assets before they are used are called

• accrued expenses.

• interim expenses.

• prepaid expenses.

• unearned expenses.

Realization concepts imply

• The receipts of the order

• The delivery of the goods

• The receipt of cash from customers

• None of these