basics of accounting

Salary account and commission account are examples of

• income account

• expense account

• asset account

• liability account

which of the following is an example of the golden rule of accounting for real accounts

• debit what comes in, credit what goes out

• debit all expenses and losses; credit all income and gains

• debit the receiver, credit the giver

• none of the above

which of the following is an example of golden rule of accounting for nominal accounts

• debit what comes in, credit what goes out

• debit all expenses and losses, credit all income and gains

• debit the receiver, credit the giver

• debit what goes out, credit what comes in

fixed assets are held by business for

• converting into cash

• generating revenue

• resale

• none of the above

assets with limited useful life are called

• limited assets

• depreciable assets

• unlimited assets

• none of the above

contingent liabilities appear in the ---

• balance sheet

• chairman report

• share holder notice

• note on account to balance sheet

trial balance should always tally due to the rule of

• all transactions are transferred to trial balance in the end

• every debit has a corresponding credit

• assets and liabilities are equal

• income and expenses have credit and debit balances

the basic accounting equation is---

• profits= revenue - costs

• assets = liabilities - stock holder's equity

• net worth= assets + liabilities

• stock holder equity = assets - liabilities

the primary function of accounting is--

• capture economic data

• related to financial transactions

• provide information for action

• accomplish non-economic goals

Gross book value of fixed assets is its--

• cost less depreciation

• historical cost

• fair market value

• realisable value