Bhandari’s trial balance was showing difference of ₹ 5,(debit side exceeds). While checking of total sales register, he found that the total is over – cast by ₹ 2,After correction in sales register what would be the difference in his trial balance.
Debit side exceeds by ₹7,000
Debit side exceeds by ₹5,000
Debit side exceeds by ₹3,000
Credit side exceeds by ₹3,000
Q.6.
Salaries paid ₹ 4,is shown in credit side of trial balance. In the total of trial balance the debit side will be short by -----------
Short by ₹ 4,500
Excess by ₹ 4,500
Short by ₹9,000
Excess by ₹ 9,000.
Q.7.
Which of the following in Trial Balance is contradictory to each other?___________.
Inventory and Drawings
Sales and Purchase Return
Carriage Inward and Outward
Trade Receivable and Liability
Q.8.
Trial Balance creates __________ accuracy.
(a) Principle
(b) Arithmetical
(c) Clerical
(d) None
Q.9.
When the amounts of a transaction must be recorded in a minimum of two accounts-
double-entry
debit
credit
accounting equation
Q.10.
A transaction is omitted completely from the books so that there is no debit and credit entry of the transaction. This is an example of what errors?
Omission
Commission
Principle
Reverse
Q.11.
Permanent accounts are used to accumulate information until it is transferred to the owner’s capital account.
True
False
Q.12.
The balances of the liability accounts must be reduced to zero to prepare the accounts for he next period.
True
False
Q.13.
Which of the following is a temporary account?
a. The dividends account
b. An asset account
c. A liability account
d. A stockholders' equity account
Q.14.
Little Corporation received $5,from a customer for whom it is to perform work in the future, debiting Cash and crediting Unearned Revenue. At the end of the accounting period, Little has earned $2,of the revenue. The adjusting entry will require a:
a. debit to Cash for $2,000.
b. debit to Service Revenue for $2,000.
c. credit to Service Revenue for $2,000.
d. credit to Service Revenue for $3,000.
Q.15.
InAbbott Company performs work for a customer and bills the customer $10,it also pays expenses of $3,The customer pays Abbott inIf Abbott uses the cash basis of accounting, then Abbott will report:
a. revenue of $10,000 in 2013.
b. revenue of $10,000 in 2014.
c. expenses of $3,000 in 2014.
d. net income of $7,000 in 2013.
Q.16.
(LO 7)Which types of accounts will appear in the post-closing trial balance and have a balance?
(a)Permanent accounts.
(b)Temporary accounts.
(c)Expense accounts.
(d)None of the above.
Q.17.
Adjustments for unearned revenues:
a)decrease liabilities and increase revenues.
(b)increase liabilities and increase revenues.
(c)increase assets and increase revenues.
d)decrease revenues and decrease assets.
Q.18.
Adjustments for prepaid expenses:
(a)decrease assets and increase revenues.
(b)decrease expenses and increase assets.
(c)decrease assets and increase expenses.
(d)decrease revenues and increase assets.
Q.19.
We purchased Indian Insurance (Prepaid Insurance) on June 1st,for $ What is the Insurance Expense as of December2020?
$105
$50.40
$147
none of the above
Q.20.
Refers to the allocation of the cost of the asset over its estimated useful life.
Consumption
Deterioration
Contra Asset
Depreciation
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