Accounting Quiz Unit II

The first record of a transaction is made in the:

• Ledger

• Trial Balance

• Journal

• Balance Sheet

The process of allocating the cost of an intangible asset over its useful life is called:

• Depreciation

• Amortization

• Depletion

• Appreciation

A Trial Balance will NOT detect which of the following errors?

• A wrong amount posted to an account

• A transaction completely omitted from the books

• An entry posted to the wrong side of an account

• An error in the balancing of an account

The principal book of accounting where accounts are maintained is the:

• Journal

• Cash Book

• Ledger

• Day Book

A credit sale of goods to Mr. X for ₹5,000 should be debited to:

• Sales Account

• Cash Account

• Mr. X's Account

• Purchases Account

Under the Straight-Line Method (SLM), the amount of depreciation each year is:

• Increasing

• Decreasing

• Constant

• Fluctuating

An amount set aside out of profits to meet a specific future liability is a:

• Reserve

• Provision

• Contingent Asset

• Fictitious Asset

Goodwill is an example of a(n):

• Tangible Asset

• Fictitious Asset

• Current Asset

• Intangible Asset

The GST paid on the purchase of goods is known as:

• Output GST

• Input GST

• Exempt GST

• Zero-rated GST

Treating a revenue expenditure as a capital expenditure is an error of:

• Omission

• Commission

• Principle

• Duplication