Accountancy Basics Quiz

Which account relates to income, expenses, losses, and gains of a business concern?

• Real Account

• Nominal Account

• Asset Account

• Personal Account

What does the Balance Sheet summarize?

• Assets and Liabilities of a business

• Profit and Loss of a company

• Day to day working capital management

• Efficiency in improving costs

What is the purpose of a Trading Account?

• Ascertain Net profit or net loss

• Records only trading transactions

• Summarize the financial data

• Find out the bookkeeping and mathematically correct

Which type of account relates to the property or assets of a business concern?

• Real Account

• Personal Account

• Nominal Account

• Liability Account

What is the purpose of a Profit and Loss Account?

• To monitor and control costs

• To summarize the financial data

• To ascertain Net profit or net loss

• To record trading transactions

Which type of account relates to individuals, groups, firms, and institutions?

• Asset Account

• Nominal Account

• Real Account

• Personal Account

What is the function of a Compound Journal Entry?

• Records the financial position of all accounts

• Records multiple debit and credit accounts in one entry

• Records several Journal Entries separately

• Records only trading transactions

Which type of account relates to debts, loans, and obligations of a business concern?

• Real Account

• Nominal Account

• Liability Account

• Personal Account

What is the purpose of a Ledger?

• To record only cash transactions

• To summarize the financial data

• To ascertain Net profit or net loss

• To monitor and control costs

Which of the following defines outstanding salary account?

• Real A/c

• Natural personal A/c

• Artificial Personal A/c

• Representative Personal A/c