Fundamental Accounting

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

We record ___________in the books of accounts.

• financial transactions

• no financial transactions

• both financial and non financial transactions

• none of these

Which is the first step of accounting process?

• Classifying

• analyzing and interpretation

• recording

• financial statements.

Which of the following normally have a debit balance?

• Liability accounts

• Equity or capital accounts

• Income or revenue accounts

• Asset accounts

'Accounts relating to individuals, a group of individuals, firms and institution. This statement is used for which on of the following type Accounts?

• General Accounts

• Nominal Accounts

• Real Accounts

• Personal Accounts

Which on of the Following financial statement helps verify the arithmetical accuracy of posting to the ledger accounts? 

• Balance Sheet

• Profit and Loss Account

• Ratio Analysis

• Trial Balance

choose a Example for Personal Account

• Cash

• Salary

• SBI Bank

• Vehicle Showroom