While preparing a Debtors Control Account, Debit side posted items cause:

• A) Increase in creditors’ balance
• B) Both increase and decrease in debtors’ balance
• C) Increase in debtors’ balance
• D) Decrease in debtors’ balance

In case of goods sold on credit basis, _____________ is credited.

• A) Bank account
• B) Payable account
• C) Sales account
• D) Receivable account

True and fair performance of any business entity is measurable under:

• A) Both accrual and cash basis
• B) None of the given options
• C) Accrual basis
• D) Cash basis

__________________ is posted in debit side of debtors account.

• A) Credit sales
• B) Cash purchase
• C) Credit purchase
• D) Cash sales

Income earned but not received till the end of the accounting period is treated in balance sheet as:

• A) Liability
• B) Asset
• C) Capital
• D) Drawing

Advance payment at the end of the period is treated as:

• A) Drawings
• B) Liability
• C) Assets
• D) Income

_________________ is credited for closing the salaries expense for the period.

• A) Salaries income
• B) Accrued Salaries
• C) Salaries expense
• D) Income statement

_________________ is debited for closing the salaries expense for the period.

• A) Accrued Salaries
• B) Salaries income
• C) Salaries expense
• D) Income statement

Property Plant and Equipment include:

• A) All of the given options
• B) Assets used for administrative purposes
• C) Assets which are given on rental to others
• D) Assets held for production of goods or services

In case of discount allowed to debtors, _____________ is credited.

• A) Creditors account
• B) Debtors account
• C) Trade discount account
• D) Doubtful debts account

Expense account is closed at the end of the accounting period in:

• A) Income statement
• B) General Journal
• C) Income account
• D) Balance sheet

A payables ledger control account had a closing balance of Rs.9,000. A discount received of Rs. 500 had been omitted to record in this control account. What should be the correct balance of payables control account?

• A) Rs. 10,000 credit
• B) Rs. 9,500 credit
• C) Rs. 8,000 credit
• D) Rs. 8,500 credit

Debtors which might become bad in future is known as____________.

• A) Long term debts
• B) Doubtful debt
• C) Bad debt
• D) Sundry debtors

Unearned income at the end of the period is treated as:

• A) Drawings
• B) Liability
• C) Assets
• D) Expense

Accrued expense at the end of the period is treated as:

• A) Assets
• B) Liability
• C) Drawings
• D) Income

Mostly, control accounts are maintained for:

• A) Trade payables
• B) Inventory
• C) All of the given options
• D) Trade receivables

ABC Corporation has recently purchased a used production plant. Its purchase price is Rs. 100,000; cost incurred to remove plant from site Rs. 4,000 and installation cost is Rs. 5,000. It will be initially recognized in books at Rs. ___________.

• A) Rs. 105,000
• B) Rs. 100,000
• C) Rs. 109,000
• D) Rs. 104,000

In case of creating the provision for discount on debts, __________________ is credited.

• A) Receivable account
• B) Trade discount account
• C) Provision for discount account
• D) Discount on debts account

Matching principle is applied in:

• A) Both accrual and cash basis
• B) Cash basis
• C) Accrual basis
• D) None of the given options

Which of the following should be debited on sale of completed goods on cash basis in manufacturing concern?

• A) Sales account
• B) Finished goods account
• C) Cash account
• D) Material account