Fundamentals of Accounting, Introduction to Tally Software

From the following which is not a Depreciation method?

• Straight-line depreciation

• Diminishing balance method

• Substraction Method

• Sum-of-years-digits method

As per any accounting software, there are only two types of ledger accounts, 1.Accounts having Debit balance, 2. Accounts having Credit balances?

• False

• True

• None of the above

Accounting is the practice of maintaining precise records of the financial dealings of a
business.

• True

• False

A ____________ is a business activity that involves the transfer of money or money’s worth
between two accounts?

• a) Transaction
  
  
  

• b) Subsidiary Book

• c) Ledger

• d) Group

The earnings of a business through its activities and operations are called_________.

• a) Share capital

• b) Retained Earnings

• c) Expenditure

• d) Revenue

The accounting process begins with identifying and recording the transactions in the books
of accounts.

• a) TRUE

• b) FALSE

‘Accounts relating to individuals, a group of individuals, firms and institutions'. This
statement is used for which one of the following Type of Accounts?

• a) General Accounts
  
  
  

• b) Nominal Accounts

• c) Real Accounts

• d) Personal Accounts

‘Debit all expenses and losses; Credit all incomes and gains' is the Golden Rule for which of
the following Type of Accounts?

• a) Personal Accounts

• b) Real Accounts

• c) Nominal Accounts

• d) General Accounts.

The act of recording a transaction in the journal is called ___________.

• a) Summarising

• b) Vouchering

• c) Journalising

• d) Description

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

• a) Balance Sheet

• b) Profit and Loss A/c

• c) Ratio Analysis

• d) Trial Balance