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WorksheetsAccounting Basics 2
Total questions: 20
Worksheet time: 10mins
Which one of these is a Direct Expense?
Salary of Factory Manager
Freight outward
Insurance of inventory at showroom
Sales Commission
"Interest on Capital" is an/a ______________.
Direct Income
Direct Expense
Indirect Income
Indirect Expense
Journal Entry of "Interest on Capital" is ___________
Dr. Capital A/c and Cr. Interest on Capital A/c
Dr. Interest on Capital A/c and Cr. Capital A/c
Both are wrong.
Which one of these is a preliminary expense?
Insurance for one year
Advertisement for three years
Rent for one month
Capital is a liability on the business which would be claimed by proprietor/partner.
True
False
If the Current Assets is Rs. 286000, Fixed Assets is 214000 and total Liability is 340000. So the Capital A/c is ________________.
54000
160000
126000
Which one of these is not a Business Expense?
Depreciation
Interest on Capital
Bank Commission
Drawing
When we transfer fund from our Current Bank A/c to CC Bank A/c, the entry will be .............
Dr. CC Bank A/c and Cr. Current Bank A/c
Dr. Current Bank A/c and Cr. CC Bank A/c
Both are wrong.
Payment of LIC premium is ______________.
Indirect Expense
Direct Expense
Proprietor's Expense
Investment
What do you know about FIFO?
This is a method to take value of investment.
This is a method of revaluation of fixed assets.
This is a method of depreciation.
This is a method of inventory valuation.
How many types of business transactions are there in accounting?
3 types (income, expense and capital)
4 types (income, expense, revenue and capital)
2 types (revenue and capital)
Working capital is calculated as_____________________
current assets minus current liabilities
current liabilities minus current assets
capital minus current liabilities
Which financial statement displays the revenues and expenses of a company for a period of time?
Income Statement
Balance Sheet
Cash Flow Statement
Trial Balance
What is the main two purpose of general accounting?
Organise Financial Information
Provide useful information to outsiders, creditors etc
Keep track of Company expenses
Minimise Company taxes
Asset accounts have what type of balance?
Debit
Credit
Contra
All of the above
The account format that displays debits, credits, balances, and headings.
General Journal
General Ledger
T Account
Ledger Account
Which of these is not included as a separate item in the basic accounting equation? (Assets = Liabilities + Owner’s Capital)
Assets
Revenues
Liabilities
Owner's Capital
Which account is not a liability account?
Accounts Payable
Notes Payable
Accrued Expenses
Cash
The accounting cycle begins by recording _____________ in the form of journal entries.
Business Transaction
Financial Information
Corporate Minutes
Business Contracts
Once journal entries are recorded, they can be posted to:
Expense Book
Ledger Account
Petty Cash Book
Income Statement
