Accountancy

1 The root of financial accounting system is

• (a) Cost accounting

• (b) Book keeping

• ( c) Stewardship accounting

• (d) Social accounting

Answer explanation

Name 📛

2 Cash book is a

• (a) Principle book

• (b) Subsidiary book

• (c) Both principle and subsidiary book

• (d) Journal proper

Answer explanation

Main book

3. A cash book with discount, cash and bank column is called

• (a) Simple cash book

• (b) Three column cash book

• (c) Double column cash book

• (d) Petty cash book

Answer explanation

An all in one book

4 Purchases book is used to record

• (a) all purchases of goods

• (b) all credit purchases of assets

• (c) all credit purchases of good

• (d) all purchases of assets

Answer explanation

Credit trasactions

5 Sales book is used to record

• (a) all sales of goods

• (b) all credit sales of assets

• (c) all credit sales of goods

• (d) all sales of assets and goods

Answer explanation

Sold on credit

6 Sales return book is used to record

• (a) Returns of goods by the customer for which cash is paid immediately

• (b) Returns of goods by the customer for which cash is not paid immediately

• (c) Returns of assets by the customer for which cash is not paid immediately

• (d) Returns of assets by the customer for which cash is paid immediately

Answer explanation

Non cash item

7 Trial balance is a

• (a) Statement

• b) Account

• (c) Ledger

• (d) Journal

Answer explanation

Equals debit and credit records

8 Trial balance is prepared:

• (a) At the end of the year

• (b) On a particular date

• (c) For a year

• (d) None of the above

9 J.F means

(a)  

Answer explanation

Page in a book

10 Main objective of preparing ledger account is to

• (a) Ascertain the financial position

• (b) Ascertain the profit or loss

• (c) Ascertain the profit or loss and the financial position

• (d) Know the balance of each ledger account