ANSWER ALL QUESTIONS: - chose the right answer.

note: - need the answer as fast as passable. i will rate the answer as helpful.

21. Prepaid expense is treated as

A. Current asset

B. Current liability

C. Short term liability

D. None of these

22. Which of the following best describes a trial balance?

A. It is a list of balances on the books

B. It is a special account

C. Shows the financial position of a business

D. Shows all the entries in the books

23. Which of the following equation is related with Dual Aspect Concept ?

A. Total Assets = Total Liabilities

B. Total Assets = Capital + Outsider's Liabilities

C. Capital = Total Assets - Outsider's Liabilities

D. All of the above

24. The prime function of accounting is to

A. To record economic data

B. Provide the information basis of action

C. Classifying and recording business transaction

D. Attainment of economic goal

25. Accounting does not record non-financial transactions because of:

A. Accrual concept

B. Cost concept

C. Continuity concept

D. Money measurement concept

26. Creating provision against fluctuation in the price of investment is application of

accounting concept

A. Convention of conservatism

B. Convention of full disclosure

C. Convention of consistency

D. None of these

27. Going concern concept assumes

A. Business as a dissolving concern

B. Business on relishing values

C. Business as a going concern

D. Asset = liability

28. Which items does not come under the balance sheet

A. sales

B. Share capital

C. Reserves and surplus

D. Unsecured loan

29. Which of the following is not related with Money Measurement Concept ?

A. All business transaction should be expressed only in money

B. The transactions which cannot be expressed in money, will not be recorded in

accounting books

C. Business is treated as separate from the proprietor

D. None of These

30. Fixed assets and current assets are categorized as per concept of:

A. Separate entity

B. Going concern

C. Consistency

D. Time period

31. Income tax paid by a sole proprietor on his business income should be:

A. Debited to trading account

B. Debited to profit and loss account

C. Deducted from capital account in the balance sheet

D. None of the above

32. Payment received from Debtor

A. Decreases the Total Assets

B. Increases the Total Assets

C. Results in no change in the Total Assets

D. Increases the Total Liabilities

33. Which of the following is a liability?

A. Loan from Mr.Y

B. loan to Mr.y

C. Both (a) (b)

D. None of these

34. Purchases of goods on credit from A is recorded as:

A. Debit purchases a/c; credit cash a/c

B. Debit A a/c; credit purchases a/c

C. Debit purchases a/c; credit A a/c

D. Debit A a/c; credit stock a/c

35. The transferring of debit and credit items from journal to the respective accounts in the ledger is called as

A. Ledger

B. Posting

C. Forward journal

D. None of these

36. The following comments all relate to the recording process. Which of these statements

is correct?

A. The general ledger is a chronological record of transactions.

B. The general ledger is posted from transactions recorded in the general journal.

C. The trial balance provides the primary source document for recording transactions

into the general journal.

D. Transposition is the transfer of information from the general journal to the general

ledger.

37. ______________ system records only actual cash receipts and payments

A. Cash basis

B. Accrual basis

C. Mercantile basis

D. Single entry basis

38. Information about an item is ______________ if its omission or misstatement might influence the financial decision of the users taken on the basis of that information.

A. Concrete

B. Complete

C. Immaterial

D. Material

39. Authorized capital, also known as

A. Nominal capital

B. Paid up capital

C. Issues capital

D. None of these

40. Rent paid to landlord should be credited to

A. Landlords account

B. Rent account

C. Cash account

D. Expense account