Practice Test |
  • Journal entries are the systematic order record of financial transaction in the ______.

    trial balance
    subsidiary books
  • Which of the following statements is incorrect In the double entry accounting system maintained manually?

    A journal entry should always end with a narration explaining the need for it.
    A journal entry should be substantiated by appropriate voucher and authorized at proper level.
    A journal entry should always consist of a single debit entry matched by a corresponding credit entry.
    A journal entry is needed only in the absence of other suitable book of prime entry for the transaction.
  • The rule of journalizing in personal account is ______.

    debit the giver, credit the receiver
    debit the receiver, credit the giver
    debit what comes in, credit what goes out
    debit all expenses and losses, credit all incomes and profits
  • ______ is the record of assets of the business.

    Nominal account
    Real account
    Personal account
    Impersonal account
  • ______ does not exist in the business in real form. It appears only in the books.

    Nominal account
    Personal account
    Real account
    All the answers are correct
  • Which one of them is the correct equation?

    Expenses = Assets + Capital - Liabilities
    Liabilities= Assets + Capital
    Assets= Liabilities + Capital
    Capital= Liabilities +Assets
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