L314(1): Revision of basic accounting terms

Which statement consists of inflow & outflow of cash?

• Income statement

• Balance sheet

• Bank statement

• Cash flow statement

If you purchase a machine, where will you write it down?

• Income statement

• Balance sheet

• Notebook

• All of the above

Which of the following is an expense?

• Wages

• Telephone bill

• Electricity bill

• All of the above

You bought a chocolate for Rs. 100 and sold it to your friend for Rs. 70. What will be difference of Rs 30 for you?

• Profit

• Loss

• Expense

• Income

You start your business with _____

• Capital

• Drawings

• Expense

• Profit

Accounting is often referred as

• The grammar of Business

• The language of Business

• The Art of business

• None of the above

Accounting period is also called as financial year.

• True

• False