INTRODUCTION TO ACCOUNTING

The amount invested by the proprietor in a business is called

• Capital

• Cash

• Revenues

• Loan

Which of the following item is not an asset.

• Cash at Bank

• Motor Vehicle

• Stationery

• Inventories

A Bank Loan is classified as a:

• Revenue

• Expense

• Asset

• Liability

when the owner takes money out of the business's account it is called _________?

• credit

• drawings

• debt

• borrowing

Which of the following items would not fall under the definition of an asset ?

• Creditors

• Debtors

• Cash

• Machinery

Assets which are purchased for the purpose of operating the business and not for resale are called

• Current Assets

• Fixed Assets

• Liquid Assets

• Fictitious Assets

The person who owes money to the firm is called a

• creditor

• lender

• bank

• debtor

Mr. Moonrise started a business for buying and selling of stationery with ₹5,00,000 as an initial investment. Of which he paid ₹1,00,000 for furniture, ₹2,00,000 for buying stationery items. The amount of capital will be

• ₹2,00,000

• ₹5,00,000

• ₹1,00,000

• ₹3,00,000

An Enterprise to whom an entity owe, an amount for buying goods and services on credit is called

• Creditor

• Debtor

• Lender

• Bad debt

Which of the following is not a long term liability

• Bank loan

• Term loan

• Debentures

• Creditors