Accounting and Book keeping

Accounting & Book keeping


(Multiple Choice Questions)
1. In a manual book keeping system, transactions are first recorded in a --------
a) Purchase book b) Ledger c) Journal d) None of them
Answer: c) Journal

2. What is the supporting evidence in a business transactions called----------
a) Journal b) Ledger c) Voucher d) Contra Voucher
Answer: c) Voucher

3. In a manual book keeping system, each amount in a journal is posted to an --
-----
a) Ledger b) Account c) Report d) Profit and loss
Answer: b) Account

4. The expenses, Profit & Loss of an organization are recorded in which
account?
a) Current Account b) Personal Account c) Nominal Account d) None of
them
Answer: c) Nominal Account

5. An internal document that is prepared to prove that the total of all the debit
balances is equal to the total of all the credit balances is a ----------
a) Trial balance b) Balance sheet c) Income statement d) None of them
Answer: a) Trial balance

6. Transactions are posted into ledger accounts from----------
a) Journal b) vouchers c) Subsidiary books d) Both a and c
Answer: d) Both a and c

7. Accounting ----------- has made the recording of transactions much more
efficient
a) Books b) Software c) Notes d) Theory
Answer: b) Software

Page 1 of 2