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Accounting 11 Chap 1 and 3

Total questions: 54

Worksheet time: 27mins

Name
Class
Date
1.

When there is no question of meeting the value of a transaction, it will be known as:

a)

Cash Transaction

b)

Credit Transaction

c)

Paper Transaction

d)

None of these

2.

If there is no change in total value of assets and liabilities of a business concern it will be considered as:

a)

Qualitative change

b)

Quantitative change

c)

Monetary change

d)

Economic change

3.

According to accounting equation capital is equal to:

a)

Assets + Liabilities

b)

Expenses - Income

c)

Liabilities - Assets

d)

Assets - Liabilities

4.

Expenses paid by a business decrease:

a)

Cash

b)

Capital

c)

Cash & Capital

d)

None of these

5.

Every transaction affects:

a)

One item

b)

Two items

c)

Four items

d)

So many items

6.

A person who owes money to a business is known as a:

a)

Creditor

b)

Debtor

c)

Investor

d)

Solvent

7.

If furniture purchased on credit basis, it will be:

a)

Increase in assets and increase in capital

b)

Increase in assets and increases in expenses

c)

Increase in assets and increase in equity

d)

Increase in assets and increase in liabilities

8.

Resources owned by the business

a)

Assets

b)

Liabilities

c)

Capital

d)

Profit

9.

Furniture purchased for domestic use:

a)

Increase in assets and increase in expenses

b)

Increase in expenses and increase in liabilities

c)

Decrease in capital and decrease in assets

d)

Increase in assets and decrease in assets.

10.

When cash is paid to creditors, it will decrease.

a)

Cash

b)

Capital

c)

Debtor

d)

None of these

11.

Claims against assets owned by business are called:

a)

Assets

b)

Liabilities

c)

Capital

d)

Equities

12.

A transaction taking place with an outside person or organization is called:

a)

Internal Transaction

b)

External Transaction

c)

Paper Transaction.

d)

None of these

13.

Cash received from debtors, it will be:

a)

Increase in liabilities and decrease in assets.

b)

Increase in assets and decrease in Revenue.

c)

Increase in assets and decrease in assets.

d)

None of above.

14.

The accounting equation represents:

a)

Resources in the business are equal to the sources of business

b)

Resources are allocated at cost price

c)

Resources in the business are not equal to the sources of business

d)

Owner's give money for business.

15.

The excess of assets over liabilities is called:

a)

Profit

b)

Income

c)

Capital

d)

Equities

16.

Sold goods costing Rs.1500 for Rs. 1750 will increase the owner's equity by Rs.:

a)

250

b)

1500

c)

1750

d)

3250

17.

Purchased goods on credit and for cash will affect:

a)

Cash and goods

b)

Cash and creditors

c)

Cash, creditors and owner's equity

d)

Cash, goods and creditors

18.

Received cash from Azhar will affect:

a)

Cash and owner's equity

b)

Cash and creditors

c)

Cash and debtors

d)

Cash and goods.

19.

Cash paid to Nadeem will affect:

a)

Cash and owner's equity

b)

Cash and creditors

c)

Cash and debtors

d)

Cash and goods.

20.

All events, which are related to business, are measured in:

a)

Kilograms

b)

Money

c)

Quality

d)

Quantity

21.

The rights possessed by the owner against the assets of the business are called.

a)

Assets

b)

Liabilities

c)

Owner's Equity

d)

Owner

22.

All debts which are payable by a business to its investors and others are known as:

a)

Capital

b)

Equities

c)

Expenses

d)

Liabilities

23.

The best system of accounting in the modern world is:

a)

Single entry system

b)

Double entry system

c)

Multiple entry system

d)

No entry system.

24.

Discount allowed is:

a)

An asset

b)

A revenue

c)

A liability

d)

An expense

25.

Accounts. which keep records of properties or things are called:

a)

Personal accounts

b)

Nominal accounts

c)

Real accounts.

d)

None of these

26.

Accounts which keep records of expenses, gains and losses are called:

a)

Personal accounts

b)

Nominal accounts

c)

Real accounts

d)

None of these

27.

Purchase of furniture should be debited to:

a)

Purchase account

b)

Creditors account

c)

Furniture account

d)

Cash account

28.

Rent, salaries and wages paid are:

a)

Nominal accounts

b)

Real accounts

c)

Personal accounts

d)

None of these

29.

The claim of the supplier in the business is called:

a)

Revenue

b)

Liability

c)

Expense

d)

Asset

30.

Ahmed, s account is an example of:

a)

Personal account

b)

Real account

c)

Nominal account

d)

None of these

31.

How many categories of accounts are:

a)

Two

b)

Three

c)

Four

d)

Five

32.

Goods purchased for cash from Babar should be debited to:

a)

Babar account

b)

Goods account

c)

Purchases account

d)

Cash account

33.

Stationery account is an example of:

a)

Expense

b)

Loss

c)

Consumable asset

d)

None of these

34.

Discount received from Ali should be debited to:

a)

Discount received account

b)

Cash account

c)

Ali account

d)

None of these.

35.

Cash invested in business by owner will increase:

a)

Cash

b)

Capital

c)

Liability

d)

Both a, b

36.

Discount allowed to Ahmed will be credited to:

a)

Ahmed, s account

b)

Discount allowed account

c)

Cash account

d)

None of these

37.

Cash and personal accounts are maintained in:

a)

Single entry system

b)

Double entry system

c)

Multiple entry system

d)

None of these

38.

Real and Nominal accounts are maintained under:

a)

Single entry system

b)

Double entry system

c)

Triple entry system

d)

Multiple entry system

39.

Rent paid to landlord for a portion of building will be debited to:

a)

Landlord account

b)

Building account

c)

Rent account

d)

Cash account

40.

Purchased goods on credit increases the:

a)

Creditors

b)

Debtors

c)

Customer

d)

None of these

41.

Purchased furniture on account will be credited to:

a)

Purchased account

b)

Furniture account

c)

Cash account

d)

Creditor account

42.

All expenses and losses should be debited and all gains should be credited is applied to:

a)

Personal Accounts

b)

Real Accounts

c)

Nominal Accounts

d)

None of these

43.

Assets coming in should be debited and going out should be credited is applied to:

a)

Personal Accounts

b)

Real Accounts

c)

Nominal Accounts

d)

a and b

44.

A person who receives the benefit should be debited and who gives the benefit should be credited is applied to:

a)

Personal Accounts

b)

Real Accounts

c)

Nominal Accounts

d)

b and c

45.

Debit the increase in:

a)

Assets, Expenses

b)

Assets, Revenue

c)

Assets, Liabilities

d)

Assets, Capital

46.

Credit the increase in:

a)

Assets, Expenses

b)

Assets, Capital and Liabilities

c)

Revenue, Capital and Liabilities

d)

Expenses, Capital and Liabilities

47.

Debit the decrease in:

a)

Assets, Expenses

b)

Revenue, Capital and Liabilities

c)

Assets, Capital and Liabilities

d)

Expenses, Capital and Liabilities

48.

Credit the decrease in:

a)

Revenue and Liabilities

b)

Expenses and Liabilities

c)

Assets and Liabilities

d)

Asset and Expenses

49.

Sold merchandises on Credit to Ali Rs.7000 involves:

a)

Nominal and Real accounts

b)

Real and Personal accounts

c)

Nominal and Personal accounts

d)

Real and Real accounts

50.

Invested Rs.2, 00, 000 Cash, Building Rs.: 75000 and Furniture Rs.25000 involves:

a)

Real and Personal accounts

b)

Real and Nominal accounts

c)

Personal and Nominal accounts

d)

Real accounts

51.

Purchased Goods for Cash Rs.50000 subject to 10% trade discount involves:

a)

Real and Personal accounts

b)

Real and Nominal accounts

c)

Personal and Nominal accounts

d)

Nominal accounts

52.

Withdrew cash for personal use Rs.300 involves:

a)

Real and Proprietorship account

b)

Proprietorship and Personal accounts

c)

Real and Nominal account

d)

Nominal and Personal accounts

53.

Discount received is a:

a)

Asset

b)

Revenue

c)

Liability

d)

Expense

54.

A summary of transactions relating to a person or thing:

a)

Accounting

b)

Book-keeping

c)

Account

d)

Accountancy