Accounting mock test

Which of the following is a liability to a business?

• Accounts payable

• Bills receivable

• Interest received

• Interest paid

A debt to the business that you may or may not be able to collect is known as

• Bad debt

• Depreciation

• Doubtful debt

• Irrecoverable debt

There are ______ categories of accounts in the traditional method of accounting.

• Three

• Five

• Four

• Two

Which of the following is not treated as an income?

• Advanced income received

• Sales

• Discount received

• Profit on sale of investment

The modern method is also known as the

• Traditional method

• American method

• Golden rule method

• British method

For the following transaction name the account that has to be debited while passing JE in the books of A: - "A repaid his loan to B by goods"

• B's account

• Good's acount

• A's loan account

• Cash account

For the following transaction name the account that has to be credited while passing JE in the books of A: - "A bought furniture on credit from C"

• C's account

• Furniture account

• A's loan account

• Goods account

For the following transaction name the account that has to be credited while passing JE in the books of A: - "A sold land for a profit of Rs. 5 lakh."

• Profit from sale of land a/c

• Land account

• Asset account

• Cash account

A business would utilize __________  concept to determine the time phase of recording transactions in a business. 

• Accounting period

• Matching

• Accrual

• Realization

___________ is a stage of maintenance in accounting where accounts are classified.

• Maintaining Ledger

• Passing journal entries

• Preparing trial balance

• Preparing P&L account