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

Related Mcqs:

1. The real accounts are accounts of Assets, liabilities and ___________?

   A. Expenses
   B. Revenues
   C. Capital
   D. Drawing

2. Which of the following accounts can be classified as a real account?

   A. Rent expenses account
   B. Rent income account
   C. insurance expenses account
   D. Cash account

3. Which of the following accounts are closed at the end of an accounting period?

   A. Nominal accounts
   B. Balance sheet accounts
   C. Real accounts
   D. None of them

4. 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

5. 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

6. 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

7. 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

8. On scrutiny of a firm‘s books of accounts, it was observed that the following errors have occurred in the previous years but have not yet been rectified.

   i. Depreciation for 2011-2012- 7,000 understated
   ii. Accrued expenses as at March 31, 2013 – 10,000 understated
   The impact of this on the reported net income for the year ending March 31, 2013 is

   A. 7,000 Overstated
   B. 10,000 Overstated
   C. 17,000 Understated
   D. 17,000 Overstated

9. Which of the following entries is correct in respect of reserve for discounts on accounts payable?

   A. Debit P&L A/c and Credit Reserve for Discount on Accounts Payable A/c
   B. Debit Accounts Payable A/c and Credit P&L A/c
   C. Debit Reserve for Discount on Accounts Payable A/c and Credit P&L A/c
   D. Debit Reserve for Discount on Accounts Payable A/c and credit Accounts Payable A/c

10. Which of the following accounts appear(s) in the Balance Sheet of a business?

    i. Stock at the end of the financial year
    ii. Stock at the beginning of the financial year
    iii. Drawings
    iv. Prepaid Rent
    v. Interest received but not yet earned

    A. Only (i) above
    B. Only (iii) above
    C. Both (i)and (iii) above
    D. (i), (iii), (iv) and (v) above