Introduction to Accounting

Transactions and events that cannot be measured in money terms are not recorded in the books of accounts. It is due to Money Measurement Concept.

• True

• False

The system of recording transactions based on Dual Aspect Concept is known as ______.

The proprietor is treated as a creditor to the extent of his capital according to:

• (a) Cost Concept

• (b) Business Entity Concept

• (c) Going Concern Concept

• (d) Materiality Concept

The rule “Debit all expenses and losses and credit all gains and incomes” is applicable to Personal Account

• True

• False

The debit balance of a personal account shows ______.

What is the type of Drawings Account?

• (a) Personal

• (b) Real

• (c) Nominal

• Expenses

In Accounting, Goods is defined as:

• (a) Items which purchased for own consumption.

• (b) Items which are purchased for charity.

• (c) Items which are purchased for resale.

• (d) Items without any defect.

Personal Accounts are related to Individuals, Banks, Companies, etc.

• True

• False

The rule ‘Debit what comes in Credit what goes out’ is applicable to:-

• (a) Personal Account

• (b) Real Account

• (c) Nominal Account

• (d) Liability Account

Creditors are the ______________users of accounting.