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

Related Mcqs:

1. 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

2. A discount of $2000 was given to a supplier on his prompt repayment of debt but the cashier entered the gross amount in cash book. What should be the adjustment in cash to work out the correct balance of cash book?

   A. $2000 will be debited in cash book
   B. $2000 will be credited in cash book
   C. $4000 will be debited in cash book
   D. $4000 will be credited in the cash book

3. 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

4. Cash purchases is recorded in which of the following specialized journals?

   A. Purchase journal
   B. Sales journal
   C. Purchases return journal
   D. Cash payments journal

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

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

6. Bank sent debit advice of $500 to company being interest on overdraft. It wasn’t entered in cash book. Identify the correct adjustment in cash book.

   A. $500 will be debited
   B. $500 will be credited
   C. Non-adjustable
   D. $1000 will be subtracted

7. A company was entered in hire purchase agreement and had to pay $1000 per month. Three payments were made via bank account but no entry was found in cash book. Identify the correct adjustment in cash book

   A. $1000 will be added to cash book balance
   B. $2000 will be deducted from cash book balance
   C. $3000 will be added to cash book balance
   D. $3000 will be subtracted from cash book balance

8. 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

9. During the accounting period, sales revenue is Rs. 25,000 and accounts receivable increases by Rs. 8,000. What will be the amount of cash received from customers for the period?

   A. Rs. 33,000
   B. Rs. 25,000
   C. Rs. 17,000
   D. Rs. 8,000

10. Purchase of office equipment for cash will be recorded on which of the following sides of a cash book?

    A. Receipts
    B. Payments
    C. Incomes
    D. Expenditures