Foundation PN-2 Accounts and Cost Quiz 7

1. Rectification entries are required when:

2. Opening entries are recorded in:

3. Which of the following entries is recorded in Journal Proper?

4. The Accounting Equation represents the relationship between:

5. Which of the following is an example of Deferred Revenue Expenditure?

6. If a business owner takes goods for personal use, which account is credited?

7. The main purpose of preparing a Trial Balance is to:

8. The book used to record returns of goods sold to customers is called:

9. All transactions involving immediate cash payments are entered in:

10. Purchases made on credit are first recorded in:

11. If goods worth ₹2,000 are purchased on credit, which effect will occur?

12. The double-entry system means:

13. If an owner invests ₹50,000 cash into the business, the accounting equation will show:

14. The first step in the accounting cycle is:

15. The cost of overhauling a second-hand machine before putting it into use is:

16. Sale proceeds from old machinery would be classified as:

17. Rent paid for factory premises is an example of:

18. Expenditure on acquiring or improving a fixed asset is known as:

19. The principle that the same accounting methods should be used each year is called:

20. The convention of conservatism advises accountants to:

21. Recording revenue when it is earned, not when cash is received, follows which concept?

22. The assumption that a business will continue for the foreseeable future is based on which concept?

23. Which accounting concept ensures that personal transactions of the owner are kept separate from the business?

24. Interest on own capital is :

25. Cost reduction is :