Accounting terminology
The person to whom the amount is owed by the business for the purchase of goods on credit is called _________
CREDITOR
According to the Traditional Approach, there are how many type of accounts?
Three
What is the rule of debit and credit for Liability Account?
Increases are credits and decreases are debits
Transactions and events that can be measured in terms of money are recorded in the books of account.
Identify the accounting principle
Money measurement
Journalising is a process of ____________ a transaction in a Journal.
recording
Find the odd one out
(a) Goodwill (b) Copyright (c) Machinery (d) Trade Mark
(c) Machinery
According to Modern Approach, the types of accounts are Assets, Liabilities, Expenses, Revenue and ___________
Capital
What does credit in an Income Account signify?
Increase
Which concept (principle) assumes that a business enterprise will not be liquidated in the near future?
Going Concern Concept
If business has received interest, In the journal entry Interest Account will be _______________.
Credited
For the furniture dealer ,purchase of furniture is ______ but for other businesses ,it is ___________
Goods, Assets
According to the Traditional approach, Bank Account is a ___________ account
Personal
Where is an increase in the electricity bill recorded? Debit or Credit
Debit
Which accounting principle requires that personal expenses of proprietor or partners should be debited to Drawings Account?
Accounting Entity
or
Business Entity Principle
or
Separate entity principle
The sale of old furniture to Paresh for cash should be debited to ________ Account.
Cash
Liquid assets = Current Assets - Stock - ___________
Pre paid expenses
Ajay, a dealer in furniture, received advance against sales of tables and chairs. In your opinion how should this advance be treated according to the Modern approach
Liability
Where is a decrease in Drawing recorded? Debit or Credit
Credit
Gurpreet purchased 1,000 sq. yards of land to build a factory and paid ₹15 lakhs towards its cost including registration charges. At the end of the financial year, the value of the land came down to ₹ 13 lakhs. Gurpreet recorded the land at ₹13 lakhs.
Which principle is reflected in the above statement
Cost Concept
Goods withdrawn by the proprietor for his personal use is credited to _______________ Account
Purchases
Cost of installation of Machinery is a ____________ expenditure
Capital
Nature of Sales returns account according to Traditional Approach is ________ and according to Modern Approach is ___________
Nominal, Revenue
What is signified by a credit bank balance?
A credit bank balance signifies the amount payable to the bank by the firm
or
Bank overdraft
or
negative bank balance
An investment company has been valuing its inventory of land at lower of market price or cost. It now wants to value its inventory at the current market price which is higher than the cost. Which accounting concept will be violated?
Prudence Concept
or
Conservatism
The business purchased goods from Amar at a list price of ₹ 2,000 less 10% Trade Discount and a Cash Discount of 2%. How much will be cash discount
₹ 360