Q. The book which all accounts of the firm are maintained is known as
✅ Correct Answer: (B)
Ledger ;
Financial Accounting MCQs and Notes
Q. Which of the following errors is an error of principle?
✅ Correct Answer: (C)
Legal charges for acquisition of building for ` 500 was entered in the Legal Expenses Account
Q. Which of the following is a liability of a firm?
✅ Correct Answer: (D)
Credit balance of Bank column of Cash Book
Q. Which of the following is true?
✅ Correct Answer: (A)
Bank Account is a Personal Account
Q. If Machinery Account is debited with the amount of repairs incurred on the machine, this is an example of
✅ Correct Answer: (B)
Error of principle
Q. Which of the following is NOT a characteristic of Cash Book?
✅ Correct Answer: (D)
It always shows debit balance. It can never show credit balance
Q. Bank Overdraft is shown as a
✅ Correct Answer: (A)
Current Liability ;
Q. Which of the following is/are fixed asset(s)?
✅ Correct Answer: (C)
Patents
Q. When a Fixed Asset is obtained as a gift, the account to be credited is
✅ Correct Answer: (B)
Capital Reserve A/c
Q. The amount of Owners‘ equity in a business is not affected by
✅ Correct Answer: (A)
The percentage of Total Assets held in cash