ACCOUNTING QUIZ COMMERCE ACADEMY

Which error cannot be revealed on the preparation of trial balance?

• Wrong totalling of account

• Compensatory errors

• Error of commission

• Wrong balancing of an account

Parties to a bill of exchange are

• Drawer

• Drawee

• Payee

• All of the above

_____ will generally show a debit balance

• Bank loan

• Bad debts recovered

• Drawings

• Salary payable

Gross profit is equal to

• Opening stock + purchases - closing stock

• Net profit - expenses

• Sales - Closing stock + purchases

• Sales - Cost of goods sold

Drawing is a type of

• Expense

• Withdrawal of capital

• Income

• None of the above

Petty cash is used for payment of

• Salaries & wages of the staff

• For purchase of assets

• Small expenses relating to postage's and conveyance etc.

• All of the above

Heavy amount spent for the advertisement of new company product is

• Revenue expenditure

• Deferred Revenue expenditure

• Capital expenditure

• Either 'a' or 'c'

Under diminishing balance method, depreciation

• Is constant every year

• Increases every year

• Decreases every year

• None of the above

Bills receivable is a

• Intangible fixed asset

• Tangible fixed asset

• Current asset

• Investment

Which account is the odd one out?

• Office furniture and equipment

• Freehold land and building

• Stock of raw materials

• Plant and machinery