Accounting for Managers

551. Which item is shown on the debit side of a trial balance?

1. Rent outstanding
2. Prepaid expenses
3. Purchases returns
4. Excess of income over expenses by the firm

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552. The ______________ in a ledger helps in locating the accounts contained in it.

1. Folio
2. Pages
3. serial number
4. part number

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553. The assets of a business can be classified as ______________.

1. only fixed assets
2. only current assets
3. fixed and current assets
4. fictitious assets

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554. Non-trading institutions prepare ______________.

1. Income and expenditure account
2. Trading and profit and loss account
3. Only trading account
4. Only revenue account

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555. Sales of old material must be shown on the credit side of ______________.

1. cash book
2. income and expenditure account
3. balance sheet
4. trading account

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556. The main aim of ______________ accounting is to ascertain cost relating to the various activities of the business and to have cost control.

1. financial accounting
2. cost accounting
3. management account
4. human resource accounting

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557. Bills payable book is to keep a record of ______________.

1. bills payable to creditors
2. bills received from supplier
3. credit purchases
4. credit sales

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558. The amount brought in by the proprietor in the business should be credited to:

1. cash account
2. capital account
3. drawing account
4. bank account

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559. If a cheque sent for collection is dishonoured, the debit is given to ______________

1. suppliers account
2. bank account
3. customers account
4. cash account

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560. State which of the following errors will not be revealed by the trial balance ______________

1. errors of complete omission
2. errors of carrying forward
3. wrong totaling of the purchases book
4. error of partial omission

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