(A) Assets and Expenses
(B) Assets and Income
(C) Liabilities and Income
(D) Liabilities and Expenses
The answer is: (A) Assets and Expenses
In accounting, a debit entry usually represents assets and expenses.
Author: CSS MPT
Withdrawal of inventory by the owner for personal use is appeared in the trading account as a deduction from
(A) sales
(B) purchases
(C) overdrafts
(D) none of these
The answer is: (B) purchases
An asset posses which of the following?
(A) Future economic benefits for the business
(B) All kind of benefits for the business
(C) Expenses for the business
(D) Merits and Demerits for the business
The answer is: (A) Future economic benefits for the business
Liabilities are which of the following?
(A) Resources
(B) Obligations
(C) Future benefits
(D) Expenses
The answer is: (B) Obligations
Liabilities are obligations.
The capital of a business would change as a result of:
(A) Raw material being purchased on credit
(B) Non-current assets being purchased on credit
(C) A supplier being paid by cheque
(D) Wages being paid in cash
The answer is: (D) Wages being paid in cash
Which of the following is an indirect cost?
(A) carriage inwards
(B) production wages
(C) production materials
(D) factory rent
The answer is: (D) factory rent
There is a debit balance on the office expenses at the end of the financial year. In which section of the balance sheet this will be recorded?
(A) capital
(B) current assets
(C) current liabilities
(D) fixed assets
The answer is: (B) current assets
A fixed deposit for a particular time to earn interest is known as
(A) bond
(B) current account
(C) savings account
(D) Certificate of Deposit
The answer is: (D) Certificate of Deposit
Banks offer certificate of deposits (CDs) and pay interest to customers who deposit their money for a fixed term.
What is the difference between CDs and Savings Accounts?
I. CDs have fixed time but savings accounts have not
II. CDs have fixed interest rate but savings accounts have not
(A) I only
(B) II only
(C) I and II
(D) I or II
The answer is: (C) I and II
Certificate of deposits (CDs) usually have a fixed time period for which a fixed interest is paid.
Which of the following is NOT a debt by a bank to its customers?
(A) CDs
(B) bonds
(C) mortgages
(D) Savings accounts
The answer is: (C) mortgages
Mortgages are loans offered by a bank to its customers.