Recording of Transactions

Result

Recording of Transactions - I Test 13

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Question 1
1 / -0

In an account prepared under a double-entry system, ________ prefix suggests that the concerned account is debited.

A
To

B
By

C
Balance cd

D
Balance bd

Solution

Posting is a process of transferring debit and credit aspects of the entries appearing in the journal and other books of original entry to the and credit sides of the relevant accounts in the ledger. Posting are made using the word "To" and "By" as a prefix. For debit side entry "To" prefix is used and for credit side "By" prefix is used.
Question 2
1 / -0

The term 'Debt' is derived from Latin word_________.

A
debere

B
debonare

C
debtor

D
none of these

Solution

When we want to express an obligation or responsibility, the word "deber" is used. Its a Spanish word which signifies as debt. Debts is considered to be a liability in the financial statement. Once a firm takes money from any money lender, this has to be classified as debt.
Question 3
1 / -0

Which side represents debit ?

A
Left side

B
Right side

C
Side having shorter total

D
Side having larger total

Solution

Accounting is based on a unique concept i.e double entry system which means for every transaction there will be a debit and credit too. While preparing the financial statement, debits are shown in the left side and credits are shown on the right side.
Question 4
1 / -0

______ describes a record of the transaction.

A
Income statement

B
Journal

C
General ledger

D
Charter of accounts

Solution

The transactions are recorded first of all in the journal and then they are posted to the ledger. Thus the journal is the book of first or original entry while the ledger is the book of second entry. Journal records transactions in a chronological order. Journal is more reliable then ledger. The process of recording transactions is termed as journalising.
Question 5
1 / -0

_______ accounts relates to persons, debtors, creditors etc.

A
Personal a/c

B
Real a/c

C
Nominal a/c

D
Impersonal a/c

Solution

There are mainly three types of accounts: Real, Personal and Nominal accounts. Personal accounts are classified into subcategories: Artificial, Natural and Representative. Personal accounts are related to individuals, firms, companies, etc. A few examples of personal accounts include debtors, creditors, banks, outstanding/prepaid accounts, accounts of credit customers, accounts of good suppliers, capital, drawings, etc.
Question 6
1 / -0

_______ is an artificial personal A/c.

A
ICICI Bank A/c

B
Goodwill A/c

C
Mohan A/c

D
Building A/c

Solution

There are mainly three types of accounts: Real, Personal and Nominal accounts. Personal accounts are classified into three subcategories: Artificial, Natural and Representative. Personal accounts are related to individuals, firms, companies, etc. A few examples of personal accounts include debtors, creditors, bank, outstanding/prepaid accounts, accounts of credit customers, accounts of good suppliers, capital, drawings, etc. Personal accounts are personal accounts which are created artificially by law, such as corporate bodies and institutions, are called Artificial personal accounts. E.g. Pvt Ltd companies, LLCs, LLPs, clubs, schools, etc. ICICI Bank A/s is an artificial personal A/c.
Question 7
1 / -0

Purchase of office equipment for cash would cause __________.

A
Cash in hand to decrease

B
External liability to decrease

C
Total liabilities to increase

D
Total assets to increase

Solution

Cash exists as a company's most liquid asset. Purchasing office equipment for cash will reduce a company's assets (i.e. reduction in cash in hand). Since owner's equity equals assets minus liabilities, owner's equity will be reduced as a result of buying office equipment with cash.
Question 8
1 / -0

Accrued wages is a ____________.

A
Personal A/c

B
Suspense A/c

C
Real A/c

D
Representative personal A/c

Solution

Wages is classified as nominal account while the person to whom the wages is due is a personal account. Hence accrued wages is considered as representative personal account.
Question 9
1 / -0

Which of these represents usual accounting equation?

A
Owners Equity $$=$$ Assets $$+$$ Liability

B
Owners Equity $$+$$ Outside liability $$=$$ Total Assets

C
Assets $$+$$ Owners Equity $$=$$ Outside Liability

D
Outside Equity $$+$$ Profit $$=$$ Total Assets

Solution

The accounting equation is the foundation of double entry accounting. The accounting equation displays that all assets are either financed by borrowing money or paying with the money of the company's shareholders. Thus, the accounting equation is: Assets = Liabilities + Owner's equity. The balance sheet is a complex display of this equation, showing that the total assets of a company are equal to the total of liabilities and owner's equity.
Question 10
1 / -0

Rent receivable is a ________.

A
Nominal A/c

B
Real A/c

C
Personal A/c

D
Representative personal A/c

Solution

Representative personal accounts are those which represent a certain person or a group directly or indirectly. E.g. Let's say that wages paid in advance to an employee-a wage prepaid account will be opened in the books of accounts. This wages prepaid account is a representative personal account indirectly linked to the person. Representative personal accounts include outstanding salaries, rent receivable, prepaid rent, etc.

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Re-Attempt Weekly Quiz Competition

Recording of Transactions - I Test 13

Result

Recording of Transactions - I Test 13

Score

-

Rank

-

SHARING IS CARING

Question 1

To

By

Balance cd

Balance bd

Solution

Question 2

debere

debonare

debtor

none of these

Solution

Question 3

Left side

Right side

Side having shorter total

Side having larger total

Solution

Question 4

Income statement

Journal

General ledger

Charter of accounts

Solution

Question 5

Personal a/c

Real a/c

Nominal a/c

Impersonal a/c

Solution

Question 6

ICICI Bank A/c

Goodwill A/c

Mohan A/c

Building A/c

Solution

Question 7

Cash in hand to decrease

External liability to decrease

Total liabilities to increase

Total assets to increase

Solution

Question 8

Personal A/c

Suspense A/c

Real A/c

Representative personal A/c

Solution

Question 9

Owners Equity $$=$$ Assets $$+$$ Liability

Owners Equity $$+$$ Outside liability $$=$$ Total Assets

Assets $$+$$ Owners Equity $$=$$ Outside Liability

Outside Equity $$+$$ Profit $$=$$ Total Assets

Solution

Question 10

Nominal A/c

Real A/c

Personal A/c

Representative personal A/c

Solution

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