TEL 1 - Basic Fundamentals of Accounting

Which one of the following financial statements helps verify the arithmetical accuracy of posting to the ledger accounts?

• Balance Sheet

• Profit and Loss a/c

• Ratio Analysis

• Trial Balance

Debit all expenses and losses, Credit all income and gains is the Golden rule for which of the following types of accounts?

• Personal Accounts

• Real Accounts

• Nominal Accounts

• General Accounts

Accounts-related to individuals, a group of individuals, firms, and institutions. This statement is used for which one of the following types of accounts?

• General Accounts

• Personal Accounts

• Real Accounts

• Nominal Accounts

Does the accounting process begin with identifying and recording the transaction in the books of accounts?

• True

• False

• None

…………………………..is not an Accounting Group in Tally?

• Indirect Expenses

• Profit & Loss a/c

• Sales Account

• Misc. Expenses (Assets)

Pinnacle Enterprises paid ‘Conveyance’ expenses. Which Accounting Group did you select during the creation of this ledger?

• Direct Expenses

• Indirect Income

• Direct Income

• Indirect Expenses

Which of the given option will lead to a flow out of money from Pinnacle Enterprises?

• Capital Introduced by Mr. Kumar

• Loan received from Bank

• Purchases and Expenses

• Sales and Income

Choose the correct equation?

• Assets = Stockholder’s (or Owner) Equity

• Assets = Liabilities + Stockholder’s (or Owner) Equity

• Assets = Liabilities + Expenses

• Assets = Liabilities + Income

Pinnacle Enterprises need to pay salaries to an employee for their service to the company. It is usually paid on the 5th of the following month. How do you treat the amount of salary payable amount to employees in the books?

• Liabilities

• Current Assets

• Income

• Fixed Assets

Pinnacle Enterprises bought computers, printers, and office furniture for the purpose of continuous use and in turn to generate income for the business. How do you treat them in the books of account?

• Stock-In-Hand

• Fixed Assets

• Current Assets

• Cash-In-Hand