Chapter3.docx

MULTIPLE CHOICE QUESTIONS ANALYSIS OF BUSINESS TRANSACTIONS

Q.1 Q.1

A summa summariz rized ed reco record rd of of a perso person n or thin thing g is know known n as

(a) Journal (b) Account (c) Trial Balance (d) Ledger Q.2 Q.2 Accoun Accounts ts relat relating ing to to person persons s and rm rms s are call called: ed: (a) Real Accounts (b) Nominal Accounts (c) Valuation Accounts (d) Personal Accounts Q.3 Accounts Accounts relating relating to prope propertie rties s and things things owned owned by by business business are: (a) Real Accounts (b) Nominal Accounts (c) Proprietary Accounts (d) Personal Accounts Q. Q. Accoun Accounts ts whic which h record record e! e!pen penses ses and and inco income me are: are: (a) Real Accounts (b) Nominal Accounts (c) Property Accounts (d) Personal Accounts Q." Q." #e #eal al acco accoun unts ts are are rel relat ated ed to to:: (a) Expenses and losses (b) ncome and gains (c) !ustomers" creditors (d) Assets Q.$ Q.$ %omi %omina nall acco accoun unts ts are are rel relat ated ed to: to: (a) Assets and and Liabi abilities (b) Expenses" losses # income (c) !ustomers" creditors (d) Assets Q.& 'he basic basic rule rule of book book keepi keeping( ng( )r. the recei*e recei*er r and +r. +r. the gi*er is applicable to: (a) Personal Accounts (b) Nominal Accounts (c) Property Accounts (d) Real Accounts Q., 'he basic basic rule rule of book book keepi keeping( ng( )r. what comes comes in and +r. +r. what goes out is applicable to: -u/ranwala 0oard 22 (a) Personal Accounts (b) Real Accounts (c) Nominal Accounts (d) None o$ t%ese Q. 'he system system of of record recording ing business business transacti transactions ons ha*ing ha*ing two two aspects is known as: (a) &ingle entry system (b) 'ouble entry system (c) odern system (d) American system Q.1 )ouble )ouble entry system system in*ol*es in*ol*es at least:

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Q.21

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Q.23

(a) ne Account (b) T*o Accounts (c) T%ree Accounts (d) None o$ t%ese +ash account account is kind kind of: (a) Personal Accounts (b) Real Accounts (c) Nominal Accounts (d) None o$ t%ese 4alaries 4alaries account account is kind kind of: of: (a) Personal Accounts (b) Real Accounts (c) Nominal Accounts (d) None o$ t%ese 'aha Account Account is kind of: (a) Personal Accounts (b) Real Accounts (c) Nominal Accounts (d) None o$ t%ese 5ro*ision 5ro*ision for doubtfu doubtfull debts is: (a) Real Account (b) Proprietary Account (c) Valuation Account (d) None o$ t%ese #eal account accounts s are also also known as: as: (a) Property Accounts (b) Proprietary Accounts (c) Valuation Accounts (d) None o$ t%ese %ominal %ominal accounts accounts are also also known as: (a) Valuation Accounts (b) Proprietary Accounts (c) Property Accounts (d) None o$ t%ese American rules of )r. )r. and +r. +r. based upon: (a) Britis% approac% (b) +renc% approac% (c) Accounting e,uation (d) None o$ t%ese Assets will )r. )r. when there is: (a) ncrease in liabilities (b) increase in assets (c) 'ecrease in assets (d) 'ecrease in liabilities +apital +apital account account is is a kind of: of: (a) Personal Accounts (b) Real Accounts (c) Nominal Accounts (d) Valuation o$ t%ese 6hich of the followings followings will )r.7 )r.7 (a) 'ecrease in assets (b) 'ecrease in Expense (c) 'ecrease in liability (d) ncrease in income 6hich of the following following accounts accounts is increased by debit entries7 entries7 (a) !apital Account (b) &ales Account (c) Building Account (d) Purc%ases Return Account A credit credit is represen represented ted by: by: (a) 'ecrease in liability (b) increase in asset (c) ncrease in liability (d) 'ecrease in o*ner-s e,uity 5ersonal 5ersonal Accounts Accounts related related to: (a) Assets and liabilities (b) Expenses and losses

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(c) 'ebtors and creditors (d) ncomes and .ains 5urchase of building for cash relates to: to: (a) Personal Accounts (b) Real Accounts (c) Nominal Accounts (d) Valuation o$ t%ese )ebit )ebit the increase increase in: in: (a) Assets" Re/enue (b) Assets" !apital (c) Assets" Liabilities (d) Assets" expenses +redit +redit the increase increase in: in: (a) Assets" Re/enue (b) Re/enue" !apital # Liabilities (c) Assets" !apital # Liabilities (d) Assets" expenses )iscount )iscount recei* recei*ed ed is: (a) An Assets (b) A Liability (c) A Re/enue (d) An Expenses )ebit )ebit the decrease decrease in: in: (a) Re/enue" !apital # Liability (b) Expenses" !apital (c) Losses" Liabilities (d) Assets" expenses 4ales account account is kind of: of: (a) Personal Accounts (b) Real Accounts (c) Nominal Accounts (d) Valuation o$ t%ese All e!penses 8 losses )r. )r. and all incomes 8 ains +r. +r. applied to: (a) Personal Accounts (b) Real Accounts (c) Nominal Accounts (d) All o$ t%ese

ANSWERS

0 (b) 5 (b) 00 (b) 05 (b) 10 (c) 15 (b)

1 (d) 6 (a) 01 (c) 06 (c) 11 (c) 16 (c)

2 (a) 7 ( b) 02 (a) 07 (b) 12 (c) 17 (a)

3 (b) 8 (b) 03 (c) 08 (a) 13 (b) 18 (c)

4 (d) 09 (b) 04 (a) 19 (c) 14 (d) 29 (c)