Incapability of a person or an enterprise to pay the debts is known as ______

(a)

Solvent

(b)

Insolvency

(c)

Bad debt

The result of a business may be ________

(a)

Profit

(b)

Loss

(c)

Profit or Loss

The rule of stock valuation 'cost price or realisable value' whichever is lower is based on the accounting principle of :

(a)

Materiality

(b)

Money measurement

(c)

Conservatism

(d)

Accrual

Accounts of persons with whom the business deals is known as________.

(a)

Personal A/c

(b)

Real A/c

(c)

Nominal A/c

(d)

 Rrobt & Loss A/c

Statement: Purchased goods from Rahul for Rs. 10,000. Find out which of the following is related to the statement.

(a)

Cash transaction

(b)

Credit transaction

(c)

Petty cash book

(d)

Purchases A/c

Net position of an account cannot be ascertained from _________.

(a)

Journal

(b)

Ledger

(c)

Trial balance

(d)

Balance sheet

Which type of discount is not recorded in the Cash book?

(a)

Trade discount

(b)

Cash discount

(c)

Discount allowed

(d)

Discount received

Bank reconciliation statement is prepared by the_____________.

(a)

bank

(b)

creditor of a business

(c)

customer of a bank

Under the written down value method of depreciation, the amount of depreciation is ____.

(a)

Uniform in all the years

(b)

Decreasing every year

(c)

Increasing every year

(d)

None of the above

Balance sheet shows the ________ of the business.

(a)

Profitability

(b)

Financial position

(c)

Sales

(d)

Purchases