1. The gross profit is transferred to __________
account. (a) trading (b)
profit and loss (c) capital
(d) current
profit and loss
2. Wages paid for installation of machinery should be
debited to __________ account. (a) machinery
(b) wages (c)
trading (d) profit and loss
Machinery
3. All indirect expenses are debited to ___________
account. (a) trading (b) capital
(c) profit and loss (d)
current
profit and loss
4. A statement showing finacial position of the business
is called as __________. (a) Balance
sheet (b) trial balalnce (c)
capital (d) trading a/c
balance sheet
5. To find out net profit or net loss of the business
___________ account is prepared. (a)
trading (b) capital
(c) current (d) profit and loss
profit and loss
6. A _____________ is an intangible asset. (a)
goodwill (b) stock
(c) building (d)
cash
Goodwill
7. Trading account is prepared on the basis of
____________ expenses. (a) indirect
(b) direct (c) revenue (d)
other
Direct
8. The interest on drawings is transferred to __________
side of the profit and loss account. (a) debit
(b) credit (c)
asset (d) liability
Credit
9. Final accounts are prepared on the basis of __________
and adjustments. (a) trial balance
(b) capital a/c (c)
trading A/c (d) profit & loss A/c
trial balance
10. ____________ is the list of all ledger balances. (a)
balance sheet (b) trial balance
(c) trading A/c (d)
profit & loss A/c
Trial balance
11. Return outward are deducted from _____________. (a)
purchases (b) sales
(c) capital (d)
debtors
Purchases
12. The withdrawals of partner from the business for
their personal use is called as _________. (a) capital (b)
profit (c) drawings
(d) cash
Drawings
13. Income received in advance is shown on the
___________. (a) debit (b) credit
(c) asset (d)
liability
Liability
14. Prepaid expenses are shown on the _________ side of the
Balance sheet. (a) assets (b) l
iability (c) debit
(d) credit
Assets
15. Profit & Loss Account is _____________ account
(a) Real
(b) nominal (c) income (d)
Personal
Nominal
16. _____________ is a financial statement (a) Income
(b) Trading a/c (c)
balance sheet (d) Profit & loss a/c
Balance Sheet
17. A provision made for debts irrecoverable from the
debtors is called _____________. (a) bad
debts (b) reserve for discount on debtors (c)
reserve for doubtful debts (d)
additional new bad debts
reserve for doubtful debts
18. _____________ is notional loss of the business.
(a) uninsured goods (b)
goods destroyed by fire (c) depreciation
(d) loss from sale of asset
depreciation
19. _____________ a/c prepared by producers to find cost
of production. (a) Manufacturing (b)
Trading (c) Purchase
(d) Profit & loss
Manufacturing a/c
20. Wages & salaries are debited to _____________
account (a) Profit & loss (b)
trading a/c (c) expense a/c
(d) salary a/c
Trading a/c
21. _____________ a/c & _____________ a/c are
recorded to balance sheet (a) profit
& loss (b) nominal, personal (c)
real, nominal (d) real, personal
Real, Personal
22. _____________ are intangible assets and do not have
realisable value. (a) Good will (b)
profit & loss (dr bal) (c) Trade-mark
(d) Copy right.
Profit & loss (dr bal)
