___________ helps business to classify transactions according to their nature?

Related Mcqs:

1. Transactions that a BUSINESS doesn’t record in any specialised journal are recorded in which of the following journals or day books?

   A. Cash payments journal
   B. Cash receipts journal
   C. Purchases return journal
   D. General journal

2. Which of the following accounts will be debited if the business’s owner withdraws cash from business for his personal use?

   A. Drawings
   B. Cash
   C. Business
   D. Stock

3. The process of recording transactions in different journals is called_________?

   A. Posting
   B. Entry making
   C. Adjusting
   D. Journalizing

4. Which of these transactions will not be recorded in cash book?

   A. Cash received from debtors
   B. Cash paid to creditors
   C. Salary remained outstanding
   D. Cash deposited with bank

5. In support of business transaction, any written evidence is called ___________?

   A. Discount
   B. Voucher
   C. Allowance
   D. Price

6. Computers taken on hire by a business for a period of twelve months should be classified as:___________?

   A. Current assets
   B. Intangible assets
   C. Deferred revenue expenditure
   D. Not an asset

7. ___________ are checks that are issued by the business but not yet presented to bank

   A. Uncollected checks
   B. Uncredited checks
   C. Outstanding checks
   D. Bounced checks

8. Expenses of the following nature are treated as a Revenue expenses except__________?

   A. Expenses for day to day running of the business
   B. Putting the new asset in working condition
   C. Depreciation
   D. Purchase of raw material

9. BUSINESS paid rent amounting to $100″ which of the following specialized journals records this transaction?

   A. Cash receipts journal
   B. Cash payments journal
   C. Sales journal
   D. Purchase journal

10. For which step of accounting process the accountants of business entity prepare financial statements?

    A. Identification of economic event
    B. Communication of financial information
    C. Recording financial information
    D. Making decisions about business