Tests are great tool to verify your intelligence. More test means more verification of your current ability. So, we have started to take tests out of our written whole accounting ebooks. In this series, we are taking test of your ability to pass the journal entry of any business transaction. If you have already bought our this ebook and you have read it two or three times, you can also check your ability now by giving this online test. If you still did not buy you can buy now.
Question : 1. Which is correct?
If bad debt will be unclollectible, we will show it by passing the entry.
a). Debtor account Debit
Bad Debt Account Credit
b). Bad Debt Account Debit
Debtor Account Credit
c). Bank Account Debit
Bad Debt Account Credit
d). Bad Debt Account Debit
Bank Account Credit
Question : 2 Which is correct?
a). Bad Debt is the loss of business
b). Bad Debt is the profit of business
c). Bad Debt is the asset of business
d). Bad Debt is the liability of Business
Question : 3. Which is correct?
a). Prepaid Expenses are the expenses
b). Prepaid Expenses are our liability of business.
c). Prepaid Expenses are our Current Asset
d). Prepaid Expenses are our fixed asset
Question : 4. Which is correct?
If any expenses are payable at the end of year, we will pass entry.
a) Expenses Account Debit
Accrued Expenses Account Credit
b) Accrued Expenses Account Debit
Expenses Account Credit
c) Expenses account Debit
Bank Account Credit
d) Bank Account Debit
Accrued Expenses Account Credit
Question : 5. Which is correct?
a). Unbilled revenue is revenue which is received in advance.
b). Unbilled revenue is outstanding revenue
c). Unbilled revenue is revenue without issuing of bill.
d) Unbilled revenue is receivable revenue date between completing the service and giving its bill to the party.
Question : 6. Which is correct?
a) Bank Account Debit
Discount Allowed Account Debit
Debtor Account Credit
b) Bank Account Debit
Debtor Account Credit
Discount Allowed Account Credit
c) Bank Account Debit
Debtor Account Debit
Discount Allowed Account Credit
d) Discount Allowed Account Debit
Bank Account Credit
Debtor Account Credit
Question : 7. Which is correct?
a) Sales Return Account Debit
Debtor Account Credit
b) Debtor Account Debit
Sales Return Account Credit
c) Cash Account Debit
Sales Return Account
Question : 8. Which is correct?
Why is Interest on Loan Payable Account Debit in the entry
Interest on Loan Payable account Debit
Lender's loan account credit
Because
a) By debiting in this entry, we are decreasing the liability
b) By debiting in this entry, we are increasing our asset
c) By debiting in the entry, we are decreasing our asset
d) By debiting in the entry, we are increasing our liability
Question : 9. Which is correct?
When we receive the payment from borrower
a) Bank Account Debit
Borrower's loan account credit
b) Borrower's loan account debit
bank account credit
c) Borrower's loan account Debit
Capital Account Credit
Question : 10. Which is correct?
Payment of advance tax is
1. our fixed asset.
2. Current liability
3. Fixed liability
4. Current Asset
If you want to clear this test, you need to get our Journal Entries eBook or Enroll our Online Accounting Course.
