Tag: elements of book keeping and accountancy

Questions Related to elements of book keeping and accountancy

Acceptances received and recorded in bills receivable book are transferred to the ledger ______________.

elements of book keeping and accountancy bill of exchange (trade bill) dishonour of a bill dishonour of bills advantages of bill of exchange

  1. on the debit side of relevant personal accounts

  2. on the credit side of relevant personal account

  3. either (a) or (b)

  4. none of the above

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Correct Option: B

Prepaid Salary Account is _____________.

elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

  1. An Asset Account

  2. A Liability Account

  3. A Revenue Account

  4. An Expense Account

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Correct Option: A

Which of the following is (are) benefits of subsidiary ledger accounts to business?

elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

  1. It tells about customer attitude of payments

  2. It can be checked against the control account to pick up recording errors

  3. It tells about the complete history of transactions of business client

  4. All of the above

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Correct Option: D

Outstanding Salary Account is ______________.

elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

  1. An Asset Account

  2. A Liability Account

  3. A Revenue Account

  4. An Expenses Account

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Correct Option: B

Interest Received Account is ________________.

elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

  1. An Asset Account

  2. A Liability Account

  3. A Revenue Account

  4. An Expense Account

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Correct Option: C

Which of the following is an item of a creditors control account?

elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

  1. Cash purchases

  2. Cash sales

  3. Credit sales

  4. Credit purchase

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Correct Option: A

Which of the following is (are) benefit/s of subsidiary ledger accounts to business?

elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

  1. It tells about customer attitude of payments

  2. It can be checked against the control account to pick up recoding errors

  3. It tells about the complete history of transactions of business client

  4. All of the given options

Show answer
Correct Option: D

Salary Account is _______________.

elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

  1. An Asset Account

  2. A Liability Account

  3. A Revenue Account

  4. An Expenses Account

Show answer
Correct Option: D

Which of the following is an item of a debtors control account?

elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

  1. Cash sale

  2. Credit sales

  3. Credit purchase

  4. Cash purchases

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Correct Option: C

Which of the following types of information are found in subsidiary ledgers, but not in the general ledger?

elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

  1. Total cost of goods sold for the period.

  2. The quantity of a particular product sold during the period.

  3. The amount owed to a particular creditor.

  4. The portion of total current assets that consist of cash.

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Correct Option: B