Essentials of Accounting Examination

<p>It leads to an overstatement of inventory (B)</p> Signup and view all the answers

<p>Rs 2000 received from customers and Rs 1000 from cash sales (C)</p> Signup and view all the answers

<p>Rs 900 (B)</p> Signup and view all the answers

<p>Rs 525 (B)</p> Signup and view all the answers

<p>Rs 400 (B)</p> Signup and view all the answers

<p>Rs 45 (D)</p> Signup and view all the answers

<p>Discount account (D)</p> Signup and view all the answers

<p>Rs 450 (A)</p> Signup and view all the answers

<p>Rs 600 (A)</p> Signup and view all the answers

<p>Purchased goods from Raghunath (B)</p> Signup and view all the answers

<p>Rs 1,00,000 (B)</p> Signup and view all the answers

<p>Rs 1,02,000 (B)</p> Signup and view all the answers

<p>5% (B)</p> Signup and view all the answers

<p>Rs 50,000 (D)</p> Signup and view all the answers

<p>Rs 4,00,000 (C)</p> Signup and view all the answers

<p>5% (D)</p> Signup and view all the answers

<p>Rs 2,000 (D)</p> Signup and view all the answers

<p>Rs 500 (D)</p> Signup and view all the answers

<p>Recording transactions when they are earned or incurred, regardless of cash movement. (D)</p> Signup and view all the answers

<p>Personal accounts (C)</p> Signup and view all the answers

<p>An entry that involves both debit and credit in the same account. (D)</p> Signup and view all the answers

<p>Entering a payment twice in the expenses. (B)</p> Signup and view all the answers

<p>It identifies any errors or omissions between the bank and cash book. (D)</p> Signup and view all the answers

<p>A balance sheet shows assets, liabilities, and equity, while a trial balance shows all account balances. (D)</p> Signup and view all the answers

<p>Fixed capital does not change, whereas fluctuating capital includes both stability and growth in investments. (C)</p> Signup and view all the answers

<p>Payments made for services to be received in the future. (A)</p> Signup and view all the answers

An error in accounting where a transaction is recorded in the wrong account or for the wrong amount.

A list of all the debit and credit balances in the ledger, at a particular point in time. It is used to check the accuracy of the accounting records.

A summary of a company's revenues and expenses for a specific period, ending with the company's net income or loss.

A financial statement that shows a company's assets, liabilities, and equity at a specific point in time.

A summary of a company's trading activities for a specific period, showing the cost of goods sold, gross profit, and other related information.

A method of accounting where revenue is recognized when earned and expenses are recognized when incurred, regardless of when cash is received or paid.

A list of all the accounts used in a business, with their respective balances.

An entry in an accounting record that reduces the balance of another account.

Errors that affect only one side of the accounting equation.

A statement reconciling the bank balance shown in the company's books with the balance shown in the bank statement.

Expenses paid in advance for goods or services that will be used in the future.

A form of business structure where the liability of the partners is limited to their investment in the partnership.

A financial statement that shows a company's assets, liabilities, and equity at a specific point in time.

A temporary account used in accounting to balance a trial balance when there is a difference between the debit and credit sides.

A type of business transaction where goods are sold on credit, meaning the buyer is allowed to pay at a later date.

A type of business transaction where goods are returned by the customer, reducing the amount owed.

A discount offered on the purchase of goods, calculated as a percentage of the original price.

A situation where a bookkeeper finds errors in the trial balance.

A bill of exchange that is not honored by the payer when it falls due.

A record of all sales transactions, including goods sold on credit and cash sales.

A financial statement that summarizes all accounts, including assets, liabilities, and equity.

The Trading Account is a financial statement that shows the gross profit or loss of a business for a particular period. It calculates the profit or loss from buying and selling goods. It focuses on the cost of goods sold to determine the gross profit.

The Profit and Loss Account (P&L) is a financial statement that shows the net profit or loss of a business for a particular period. It considers all expenses and revenues, both those related to trading and those incurred in running the business.

A Balance Sheet is a financial statement that shows the assets, liabilities, and owner's equity of a business at a specific point in time. It provides a snapshot of the company's financial position.

The value of unsold inventory at the end of an accounting period. It's calculated as beginning inventory + purchases - cost of goods sold. This value is used to determine the cost of goods sold for the period.

It is a financial statement to show the gross profit or loss from trading activities for a particular period. It focuses on the cost of goods sold to determine gross profit or loss.

The P&L summarises all revenues and expenses of the business. It helps you understand how much profit or loss the business has made.

The balance sheet shows the assets, liabilities, and owner's equity of a company at a specific point in time. It provides a snapshot of the financial position.

The value of goods on hand at the end of the accounting period. It's also considered an asset that is used to calculate the cost of goods sold for the period.