Accountancy - 5

  The Root of financial accounting system is :

• Social accounting

•     Stewardship accounting

•       Management Accounting

•        Responsibility accounting

       The rule of stock valuation “Cost price or realizable value” whichever is lower is based on the accounting principle of:

• Conservatism

• Materiality

• Accrual

• Money measurement

       The business is liable to the proprietor of the business in respect of capital introduced by the person according to:

•        Business Entity Concept

•      Money Measurement Concept

•       Dual Aspect Concept

•       Cost Concept

      Errors not affecting the agreement of trial balance are:

•   Errors of under casting

•       Error of Principle

•       Errors of partial omission

•       Errors of overcasting

    If the total of the debit side of an account excess the total of its credit side, it means:

• Nil balance   

• Credit balance   

• Debit & Credit balance   

• Debit balance

        A list which contains balances of accounts to know whether the debit and credit balances are matched is:

• Trial Balance   

• Journal

• Balance Sheet   

• Day book

     After the preparation of ledger, the next step is the preparation of :

• Journal

• Trading account   

• Profit and Loss account   

• Trail balance.

      Purchase return book is used to record:

•    Returns of assets to the supplier for which cash is not received immediately.

•      Returns of assets to the supplier for which cash is received immediately.

•     Returns of goods to the suppliers for which cash is not received immediately.

•      None of the above.

        Sales book is used to record:

•        All credit sales of goods.

•        All sales of goods

•        All sales of assets and goods

•     All sales of assets and goods

        Cash book is a :

•      Journal proper

•       Subsidiary book

•        Both Subsidiary boo and Principal book

•        Principal book