Which of the following statements is incorrect regarding capital account?

Related Mcqs:

1. Building account is classified as _________ account?

   A. Nominal
   B. Real
   C. Cash
   D. Capital

2. Office equipments account is classified as _________ account?

   A. Nominal
   B. Real
   C. Cash
   D. Capital

3. Based on which of the following concepts, is Share Capital Account shown on the liabilities side of a Balance Sheet?

   A. Business entity concept
   B. Money measurement concept
   C. Going concern concept
   D. Matching concept

4. The normal balance of capital account is_____________?

   A. Credit balance
   B. Debit balance
   C. Cash balance
   D. Neither debit nor credit balance

5. Financial statements differ from management account because

   A. They are mainly prepared for external users of financial information
   B. They are more complex and hard to prepare
   C. The are the summary of accounting data
   D. The are prepared on basis of actual concept

6. If credit side of a bank account is greater than the debit side, it indicates which of the following?

   A. Bank overdraft
   B. Cash at bank
   C. Bank balance
   D. Current Asset

7. If debit side of a bank account is greater than credit side it indicates which of the following?

   A. Cash at bank
   B. Bank understatement
   C. Bank overdraft
   D. Balance overstatement

8. Which of the following is the normal balance of a rent expense account?

   A. Credit balance
   B. Cash balance
   C. Overdraft
   D. Debit balance

9. Which of the following is a real account?

   A. Office equipment
   B. Rent expenses
   C. Rent income
   D. Insurance expense

10. Which of the following is the closing balance of a ledger account?

    A. Balance c/d
    B. Balance b/d
    C. Balance e/d
    D. Balance f/c