Accounting for Managers

521. The person to whom the amount has to be paid is known as ______________

1. Drawee
2. Drawer
3. Acceptor
4. Payee

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522. The appropriate book to record credit purchase of machinery is ______________.

1. purchases book
2. journal
3. cash book
4. petty cash book

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523. Which account is generally used for rectification of errors?

1. Memorandum account
2. Suspense account
3. Rectification account
4. Adjustment account

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524. Premium received on issue of shares is a ______________. tempor

1. capital receipt
2. revenue receipt
3. deferred capital receipt
4. deferred revenue receipt

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525. The preparation of a Trial balance helps in ______________.

1. locating errors in principle
2. locating errors of omission
3. locating clerical errors
4. locating compensatory errors

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526. Which one of the following is capital expenditure?

1. Cost of advertisement
2. Purchase of a delivery van
3. Purchase of raw material
4. Purchase of machine oil

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527. Interest on capital is credited to ______________ account.

1. Expenses account
2. Income account
3. Capital account
4. Asset account

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528. Receipts and payments account is a ______________.

1. Personal account
2. Nominal account
3. Real account
4. Representative account

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529. Any amount received towards endowment fund is a ______________receipt.

1. Ordinary
2. Special
3. Revenue
4. Capital

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530. Income and expenditure account is a ______________.

1. Real account
2. Nominal account
3. Personal account
4. Representative account

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