Cash brought by the owner to start business is called__________?

Related Mcqs:

1. 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

2. If the business’s owner withdraws cash for his/her personal use what will be the effect on capital?

   A. Increase in capital
   B. Remain the same
   C. Decrease in capital
   D. No effect on capital

3. Introduction capital by owner of business is recorded on which side of a cash book?

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

4. Drawings by owner of business are generally recorded on which of the following side of a cash book?

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

5. When owner withdraw cash for its private use, it is called ___________?

   A. Profit
   B. Income
   C. Expense
   D. Drawing

6. 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

7. _______ the withdrawal of cash and goods by the owner of the busienss for his/her personal use?

   A. Depreciation
   B. Drawings
   C. Outflow of cash
   D. Appreciation

8. An entry which is made on both sides of a cash book is called__________?

   A. Cash entry
   B. Contra entry
   C. Payment entry
   D. Compound entry

9. The amount invested by the proprietor to start the business is called:

   A. Capital
   B. Business
   C. Drawings
   D. All of them

10. $5000 deposited in bank account was entered twice in the cash book. Identify the correct adjustment in cash book.

    A. $5000 will be credited
    B. $5000 will be debited
    C. $10,000 will be credited
    D. $10,000 will be debited