Basics of Accounting

Which of the following item is not an asset.

• Cash at Bank

• Motor Vehicle

• Stationery

• Inventories

A Bank Loan is classified as a:

• Revenue

• Expense

• Asset

• Liability

For every transaction, both the aspects are effected.

• Single entry

• Double Entry

• Financial accounting

• Management accounting

when the owner takes money out of the business's account it is called _________?

• credit

• drawings

• debt

• borrowing

Which of the following items would not fall under the definition of an asset ?

• Creditors

• Debtors

• Cash

• Machinery

Goodwill is a

• Tangible assets

• Liquid assets

• Intangible assets

• Intangible Liabilities

The amount spent in order to produce and sell the goods and services which generates income is termed as

• Revenue

• Loss

• Expenses

• Liabilities

Assets which are purchased for the purpose of operating the business and not for resale are called

• Current Assets

• Fixed Assets

• Liquid Assets

• Fictitious Assets

The person who owes money to the firm is called a

• creditor

• lender

• bank

• debtor

Mr. Moonrise started a business for buying and selling of stationery with ₹5,00,000 as an initial investment. Of which he paid ₹1,00,000 for furniture, ₹2,00,000 for buying stationery items. The amount of capital will be

• ₹2,00,000

• ₹5,00,000

• ₹1,00,000

• ₹3,00,000