Practice Accounts Questions and Answers

• Fixed assets are held by business for __________
• Change in the capital A/c of proprietor may occur due to _____________
• Which of the following is not a fixed asset?
• For every debit there will be an equal credit according to
• We can say that the business is in profit, when:
• Accounting has been referred to as the__________of business.
• Long term assets without any physical existence but, possessing a value are called 
• What is Bank Overdraft?
• Which of the following is time spann into which the total life of a business is divided for the purpose of preparing financial statements? 
• Office equipment is a______________asset for a computer manufacturer and the same office equipment is a _____ ____asset for a company that deals in these ...
• According to money measurement concept the following will be recorded in the books accounts of the business:
• GOODS DESTROYED IN FIRE . THE JOURNAL ENTRY WILL BE A. PURCHASE DR.           TO LOSS ON FIRE A/C B. LOSS IN FIRE A/C DR.            TO PURC...
• The ledger column that links the entry with the journal is called as.
• The respective normal account balances of Sales, Sales Returns and Allowances, and Sales Discounts are?
• When the total of debit and credit are equal, it represents
• What is used in preparing trial balance?
• A cheque is received from a creditor and paid into the bank on the same day. How will this transaction be recorded in the cashbook?
• The balance of cash book shows 
• Who is called father of modern accountancy who also described the duties and responsibilities of auditor?
• Government audit is conducted by the department maintained by government of India is known as:
• Audit of accounts by the staff of the business is known as:
• Which is not a continuous audit technique?
• According to ISA 500, the strength of audit evidence is determined by which two qualities?
• Process of verifying the documentary evidences of transactions are known as___________
• The discount factor used to appraise capital investment decisions is a measure of:
• Window dressing implies which among the following?
• _______ refers to the information collected by an auditor to ascertain the accuracy and compliance of a company's financial statements.
• What are the reasons for differences between the bank balance and book balance?
• Which of the following best describes a journal in accounting?
• Which of the following is a limitation of accounting that can affect the accuracy and usefulness of financial statements?
• Which of the following statements about the accrual basis of accounting is true?
• Which of the following is an example of capital expenditure?
• Which of the following financial statements would provide information about a company's income?
• Which of the following statements is true for cash basis accounting?
• Which organization sets the GAAP standards in India?
• Which principle states that transactions should be recorded when they occur, regardless of whether cash has been exchanged or not?
• Which of the following ratios measures a company's profitability?
• Which of the following financial statements shows a company's retained earnings over time?
• Which of the following financial statements shows a company's assets, liabilities, and equity at a specific point in time?
• Which financial statement reports a company’s revenues and expenses over a specific period of time?