Tag: meaning and classification of accounts

Questions Related to meaning and classification of accounts

M/s Ram & Sons Ltd's Account is ________________.

commercial studies accounting procedures - rules of debit and credit modern approach of rules of accounts meaning and classification of accounts classification of accounts

  1. Natural Personal Account

  2. Artificial Personal Account

  3. Representative Personal Account

  4. None of these

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Correct Option: B

Ram's Capital Account is _______________.

commercial studies accounting procedures - rules of debit and credit modern approach of rules of accounts meaning and classification of accounts classification of accounts

  1. Natural Personal Account

  2. Artificial Personal Account

  3. Representative Personal Account

  4. None of these

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Correct Option: C

Advance Salary to Shyam Account is _______________.

commercial studies accounting procedures - rules of debit and credit modern approach of rules of accounts meaning and classification of accounts classification of accounts

  1. Natural Personal Account

  2. Artificial Personal Account

  3. Representative Personal Account

  4. None of these

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Correct Option: C

Interest receivable from Mohan, a Borrower Account is ______________.

commercial studies accounting procedures - rules of debit and credit modern approach of rules of accounts meaning and classification of accounts classification of accounts

  1. Natural Personal Account

  2. Artificial Personal Account

  3. Representative Personal Account

  4. None of these

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Correct Option: C

Salary Payable to Shyam Account is _____________.

commercial studies accounting procedures - rules of debit and credit modern approach of rules of accounts meaning and classification of accounts classification of accounts

  1. Natural Personal Account

  2. Artificial Personal Account

  3. Representative Personal Account

  4. None of these

Show answer
Correct Option: C

Interest received in advance from Mohan, a borrower Account is ________________.

commercial studies accounting procedures - rules of debit and credit modern approach of rules of accounts meaning and classification of accounts classification of accounts

  1. Natural Personal Account

  2. Artificial Personal Account

  3. Representative Personal Account

  4. None of these

Show answer
Correct Option: C

Ram's Drawings Account is _________________.

commercial studies accounting procedures - rules of debit and credit modern approach of rules of accounts meaning and classification of accounts classification of accounts

  1. Natural Personal Account

  2. Artificial Personal Account

  3. Representative Personal Account

  4. None of these

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Correct Option: C
Explanation:

Drawings account is a representative personal account. A representative personal account represents a person/persons. Some examples of representative personal account are capital, outstanding wages, prepaid salaries.

Purposes of an accounting system includes all of the following except _____________.

commercial studies accounting procedures - rules of debit and credit modern approach of rules of accounts meaning and classification of accounts classification of accounts

  1. interpret and record the effect of business transactions

  2. classify the effects of transactions to facilitate the preparation of reports

  3. summarize and communicate information to decision makers

  4. deciding the line of business for an entity

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Correct Option: D

Which of the following is a personal account?

book keeping and accountancy accounting procedures - rules of debit and credit golden rules of debit and credit (traditional approach) types of account meaning and classification of accounts

  1. Outstanding Expense

  2. Investment

  3. Share premium

  4. Salary

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Correct Option: A
Explanation:

Outstanding expenses are recorded in books of finance at the end of an accounting period to show the true numbers of a business. 

The outstanding expense is a personal account and is treated as a liability for the business. It is also shown on the liability side of a balance sheet.

Kamal's account, Mala's account, Sharma's accounts are example of _______________.

book keeping and accountancy accounting procedures - rules of debit and credit golden rules of debit and credit (traditional approach) types of account meaning and classification of accounts

  1. Artificial or legal persons personal account

  2. Natural persons' personal account

  3. Representative personal accounts

  4. Any of the above

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Correct Option: B