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By Accounting Mcqs No Comments

The balance of which of the following accounts do not disappear, once they are debited/credited to Trading Account?

A. Sales
B. Purchases
C. Inward returns
D. Closing stock

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The closing stock D. is the value of goods which remain unsold at the end of the period whose balance appears once in Trading Account and once in Balance Sheet of the business.
All other accounts sales A., purchases B. and Inward Returns C. are closed once they are absorbed by the Trading Account. Thus D. is the correct answer.

Related Mcqs:

  1. A journal entry in which two or more account is debited or credited is referred as____________?

    A. Journal entry
    B. Multi entry
    C. Additional entry
    D. Compound entry

  2. Goods returned by customer should be debited to which of the following accounts?

    A. Sales income account
    B. Sales account
    C. Return inward account
    D. Expenses account

  3. 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

  4. Buildings account is debited with an amount towards repairs. This is an example of?

    A. Error of commission
    B. Error of principle
    C. Error of omission
    D. Compensating error

  5. Which of the following account with normal balance is shown at the debit side of a trial balance?

    A. Rent income account
    B. Creditors account
    C. Unearned income account
    D. Cash account

  6. Which of the following account with normal balance is shown at the credit side of a trial balance?

    A. Cash account
    B. Bank account
    C. Equipment account
    D. Accrued expenses account

  7. Which of the following accounts will be credited if a company purchases building for cash?

    A. Capital account
    B. Fixed assets account
    C. Building account
    D. Cash account

  8. If debit balance is greater than creadit balance then the account blance will be__________?

    A. Credit balance
    B. Debit and credit balance
    C. Cash balance
    D. Debit balance

  9. Debit balance = Credit balance in a trial balance indicates that:

    A. No error in recording transactions
    B. No error in posting entries to ledger accounts
    C. Account balances are correct
    D. Mathematically Capital+Liabilities=Assets

  10. A chart of accounts generally start with which of the following types of accounts?

    A. Assets accounts
    B. liability accounts
    C. Cash accounts
    D. Revenue accounts

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The correct answer to the question: "The balance of which of the following accounts do not disappear, once they are debited/credited to Trading Account?" is "Closing stock".

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