SILVER ROUND

Which of the following account types increase by debits in double-entry accounting

• Assets, Expenses, Losses

• Assets, Revenue, Gains

• Expenses, Liabilities, Losses

• Gains, Expenses, Liabilities

How are a company’s financial statements used

• For internal analysis

• For external negotiation

• For compliance

• All of the above

In a journal entry, a debit decreases which of the following accounts

• Cash

• Accounts Payable

• Supplies Expense

• Both a and c

Which inventory valuation method reflects the most current market value for inventory on hand

• Last-in-First-Out (LIFO)

• Average Costs

• First-in-First-Out (FIFO)

• Specific Identification

Long term assets without any physical existence but, possessing a value are called

• Intangible assets

• Fixed assets

• Current assets

• Investments

The assets that can be easily converted into cash within a short period, i.e., 1 year or less are known as

• Current assets

• Fixed assets

• Intangible assets

• Investments

What is the purpose of a trial balance

• To ensure that the total debits equal the total credits in a company's general ledger

• To track the cash flow of a company

• To calculate the net income of a company

• To determine the value of a company's assets and liabilities

Which of these best explains fixed assets

• Are bought to be used in the business

• Are expensive items bought for the business

• Are items which will not wear out quickly

• Are of long life and are not purchased specifically for resale

Suppliers personal a/c are seen in the

• Sales Ledger

• Nominal ledger

• Purchases Ledger

• General Ledger

At the balance sheet date, the balance on the Accumulated Provision for Depreciation Account is

• Simply deducted from the asset in the Balance Sheet

• Transferred to Profit and Loss Account

• Transferred to the Asset Account

• Transferred to Depreciation Account