The asset that can be easily converted into cash within a short period, ie.,1 year or less are known as

• Current asset

• Fixed assets

• Intangible assets

• Investments

According to which principle the same accounting methods should be used each year

• Prudence

• Full disclosure

• Materiality

• Consistency

The elements of the accounting equation are

• Assets, liabilities, capital

• Liabilities, capital

• Liabilities

• capital

Arun is a book -seller, which item will be goods for his business?

• Purchase of computer

• Purchase of fan

• Purchase of furniture

• Purchase of stationery

The expenses due but not paid is known as-

• Prepaid expenses

• Debtors

• Outstanding expenses

• Bills receivable

Which accounting principle states that companies and their owners should be treated as separate legal entities?

• Monetary Unit Assumption

• Business Entity Concept

• Periodicity Assumption

• Going Concern Concept

The concept that assumes a business will operate for a long period of time and will not be dissolved in the near future is:

• Accrual Concept

• Consistency Concept

• Going Concern Concept

• Materiality Concept

Which of the following is considered an intangible asset?

• Current assets

• Fixed assets

• Patents, Copyrights, and Trademarks

• Investments

The principle of Dual Aspect states that

• For every debit, there is a credit

• All transactions have two impacts

• Both a and b

• None of the above

When a business takes goods for its own use, what entry is made?

• Debit Drawings Account, Credit Purchases Account

• Debit Drawings Account, Credit Stock Account

• Debit Sales Account, Credit Stock Account

• Debit Purchases Account, Credit Drawings Account