Nature of Accounts and Rules of Debit and Credit Test 1

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Nature of Accounts and Rules of Debit and Credit Test 1

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Weekly Quiz Competition

Question 1
1 / -0

An international reserve asset created by the IMF taking into account the global need to supplement existing reserves is called ______________.

A
Quota

B
International Monetary Right

C
Special Drawing Rights

D
None of the above
Question 2
1 / -0

Debit means _________.

A
Decrease in asset

B
Increase in liability

C
An entry on the left hand side of an account

D
Moderate increase in liability

Solution

Debit means left side. For e.g. every accounting entry will have a debit and credit amount. The debit amount is usually listed first and will be entered on the left side of the general ledger account indicated. The general ledger accounts will have both a debit and credit side, left and right side. The balance in a general ledger account will be either a debit balance or a credit balance.
Question 3
1 / -0

Which one of the following is an example of personal account?

A
Capital account

B
Building account

C
Cash account

D
Investment account

Solution

A personal account is an account for use by an individual for that person's own needs. Capital account is representing owner of the business, a person or organisation. Examples of personal account are: Debtors, creditors, banks, capital, drawing, outstanding/prepaid accounts.
Question 4
1 / -0

The basic rule of book-keeping, debit the receiver and credit the giver is applicable to ________________.

A
Nominal account

B
Real account

C
Personal account

D
Drawing account

Solution

The rule related to Personal account states debit the receiver and credit the giver. In other words, if a person receives something, receiver's account shall be debited and if a person gives something, giver's account shall be credited.
Question 5
1 / -0

Any written document in support of a business transaction is called a ___________.

A
Voucher

B
Bill

C
Carbon Copy

D
Expense Bill

Solution

Prudence concept of accounting defines that each of the accounting transaction must have prudent documents. Each business transaction must have a proper supporting. This documents are called as voucher.
Question 6
1 / -0

How many sides does an account have?

A
One

B
Two

C
Three

D
Four

Solution

After recording transactions in Journal, they are transferred to the ledger accounts. Ledger is known as a secondary book. Each account has two sides i.e. debit side and the credit side.
Question 7
1 / -0

Insurance unexposed account is ________.

A
Real Account

B
Personal Account

C
Nominal Account

D
Representative Account

Solution

This is like an advance payment of expenses against which services are not delivered. Till it expires, it should be considered as debit to personal account.
Question 8
1 / -0

The process of recording financial transactions in the journal is called ___________.

A
Journalizing

B
Utilizing

C
Posting

D
Balancing

Solution

All business transactions are to be first recorded in journal in chronological order. Process of recording the transaction is called journalizing.
Question 9
1 / -0

Receipts and payments account is a _____________.

A
Personal Account

B
Nominal Account

C
Real Account

D
Representative Account

Solution

“A receipt and payment account is a summarized cash book for a given period”.This is a summary of the cash transactions as in the cash book”. Non-profit organizations prepare receipt and payment account at the end of the year. With the help of this account and some additional information, we prepare income and expenditure account to disclose the true results of non- profit organizations.
So, the receipt and payment account is a real account.
Question 10
1 / -0

Journal is known as book of _________ entry.

A
Original

B
Duplicate

C
Personal

D
Nominal

Solution

Every business transaction must be recorded in books of account in chronological order. All transactions are first recorded in a book which is called journal.
Journal is called the book of original entry.

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Re-Attempt Weekly Quiz Competition

Nature of Accounts and Rules of Debit and Credit Test 1

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Nature of Accounts and Rules of Debit and Credit Test 1

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Rank

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SHARING IS CARING

Question 1

Quota

International Monetary Right

Special Drawing Rights

None of the above

Question 2

Decrease in asset

Increase in liability

An entry on the left hand side of an account

Moderate increase in liability

Solution

Question 3

Capital account

Building account

Cash account

Investment account

Solution

Question 4

Nominal account

Real account

Personal account

Drawing account

Solution

Question 5

Voucher

Bill

Carbon Copy

Expense Bill

Solution

Question 6

One

Two

Three

Four

Solution

Question 7

Real Account

Personal Account

Nominal Account

Representative Account

Solution

Question 8

Journalizing

Utilizing

Posting

Balancing

Solution

Question 9

Personal Account

Nominal Account

Real Account

Representative Account

Solution

Question 10

Original

Duplicate

Personal

Nominal

Solution

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