Ledger Test 1

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

• True

• False

Accounts related to individuals, group of individuals, firms and institutions comes under which type of accounts

• General A/C

• Nominal A/C

• Real A/C

• Personal A/C

Debit all expenses and losses; credit all incomes and gains is the golden rule for

• Personal A/c

• Real A/c

• Nominal A/c

• General A/c

Which of the following financial statement helps to verify the financial accuracy of posting to the ledger account ?

• Balance Sheet

• Profit or Loss A/c

• Ratio analysis

• Trial Balance

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

Profit or Loss A/c records which of the following transactions

• Direct income and Direct expenses

• Indirect incomes and Indirect expenses

• Direct income and Indirect expenses

• Indrect income and Direct expenses

Prepaid Expenses comes under which of the following ledger group

• Direct Expenses

• Indirect Expenses

• Current Assets

• Current Liabilities

Insurance Premium comes under which of the following ledger group

• Direct Income

• Indirect Income

• Direct Expenses

• Indirect Expenses

Capital comes under which of the following ledger group

• Direct Expenses

• Indirect Income

• Direct Income

• Capital

Outstanding expenses comes under which of the following ledger group

• Current Assets

• Current Liabilities

• Direct Expenses

• Direct Income