3) Term "Credit" means_______ by the business.

A)Receiving of benefits

B)It has no effect on business

C)Providing of benefits

D)It depends upon items

4) When a Liability is reduced or decreased, it is recorded on the:

A)Left or credit side of the account

B)Right or debit side of the account

C)Right or credit side of the account

D)Left or debit side of the account

5) When Capital is increased by an amount, it is recorded on the:

A)Right or debit side of the account

B)Left or credit side of the account

C)Left or debit side of the account

D)Right or credit side of the account

6) What type of expenses are paid out of Gross Profit?

A)General Expenses

B)Financial Expenses

C)Selling Expenses

D)All of the given options

7) Which of the following shows summary of a company's financial position at a specific date?

A)Profit & Loss Account

B)Cash Flow Statement

C)Balance Sheet

D)Income & Expenditure Account