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MULTIPLE

CHOICE QUESTIONS
ANALYSIS
OF BUSINESS TRANSACTIONS

Q.1

A summarized record of a person or thing is known as

(a)
Journal
(b)
Account
(c)
Trial Balance
(d)
Ledger
Q.2 Accounts relating to persons and firms are called:
(a)
Real Accounts
(b)
Nominal Accounts
(c)
Valuation Accounts
(d)
Personal Accounts
Q.3 Accounts relating to properties and things owned by business
are:
(a)
Real Accounts
(b)
Nominal Accounts
(c)
Proprietary Accounts
(d)
Personal Accounts
Q.4 Accounts which record expenses and income are:
(a)
Real Accounts
(b)
Nominal Accounts
(c)
Property Accounts
(d)
Personal Accounts
Q.5 Real accounts are related to:
(a)
Expenses and losses
(b)
Income and gains
(c)
Customers, creditors
(d)
Assets
Q.6 Nominal accounts are related to:
(a)
Assets and Liabilities
(b)
Expenses, losses & income
(c)
Customers, creditors
(d)
Assets
Q.7 The basic rule of book keeping, Dr. the receiver and Cr. the
giver is applicable to:
(a)
Personal Accounts
(b)
Nominal Accounts
(c)
Property Accounts
(d)
Real Accounts
Q.8 The basic rule of book keeping, Dr. what comes in and Cr. what
goes out is applicable to: (Gujranwala Board 2002)
(a)
Personal Accounts
(b)
Real Accounts
(c)
Nominal Accounts
(d)
None of these
Q.9 The system of recording business transactions having two
aspects is known as:
(a)
Single entry system
(b)
Double entry system
(c)
Modern system
(d)
American system
Q.10 Double entry system involves at least:

Q.11

Q.12

Q.13

Q.14

Q.15

Q.16

Q.17

Q.18

Q.19

Q.20

Q.21

Q.22

Q.23

(a)
One Account
(b)
Two Accounts
(c)
Three Accounts
(d)
None of these
Cash account is kind of:
(a)
Personal Accounts
(b)
Real Accounts
(c)
Nominal Accounts
(d)
None of these
Salaries account is kind of:
(a)
Personal Accounts
(b)
Real Accounts
(c)
Nominal Accounts
(d)
None of these
Taha Account is kind of:
(a)
Personal Accounts
(b)
Real Accounts
(c)
Nominal Accounts
(d)
None of these
Provision for doubtful debts is:
(a)
Real Account
(b)
Proprietary Account
(c)
Valuation Account
(d)
None of these
Real accounts are also known as:
(a)
Property Accounts
(b)
Proprietary Accounts
(c)
Valuation Accounts
(d)
None of these
Nominal accounts are also known as:
(a)
Valuation Accounts
(b)
Proprietary Accounts
(c)
Property Accounts
(d)
None of these
American rules of Dr. and Cr. based upon:
(a)
British approach
(b)
French approach
(c)
Accounting equation
(d)
None of these
Assets will Dr. when there is:
(a)
Increase in liabilities
(b)
increase in assets
(c)
Decrease in assets
(d)
Decrease in liabilities
Capital account is a kind of:
(a)
Personal Accounts
(b)
Real Accounts
(c)
Nominal Accounts
(d)
Valuation of these
Which of the followings will Dr.?
(a)
Decrease in assets
(b)
Decrease in Expense
(c)
Decrease in liability
(d)
Increase in income
Which of the following accounts is increased by debit entries?
(a)
Capital Account
(b)
Sales Account
(c)
Building Account
(d)
Purchases Return Account
A credit is represented by:
(a)
Decrease in liability
(b)
increase in asset
(c)
Increase in liability
(d)
Decrease in owners equity
Personal Accounts related to:
(a)
Assets and liabilities
(b)
Expenses and losses

Q.24

Q.25

Q.26

Q.27

Q.28

Q.29

Q.30

(c)
Debtors and creditors
(d)
Incomes and Gains
Purchase of building for cash relates to:
(a)
Personal Accounts
(b)
Real Accounts
(c)
Nominal Accounts
(d)
Valuation of these
Debit the increase in:
(a)
Assets, Revenue
(b)
Assets, Capital
(c)
Assets, Liabilities
(d)
Assets, expenses
Credit the increase in:
(a)
Assets, Revenue
(b)
Revenue, Capital & Liabilities
(c)
Assets, Capital & Liabilities (d)
Assets, expenses
Discount received is:
(a)
An Assets
(b)
A Liability
(c)
A Revenue
(d)
An Expenses
Debit the decrease in:
(a)
Revenue, Capital & Liability (b)
Expenses, Capital
(c)
Losses, Liabilities
(d)
Assets, expenses
Sales account is kind of:
(a)
Personal Accounts
(b)
Real Accounts
(c)
Nominal Accounts
(d)
Valuation of these
All expenses & losses Dr. and all incomes & Gains Cr. applied
to:
(a)
Personal Accounts
(b)
Real Accounts
(c)
Nominal Accounts
(d)
All of these

ANSWERS

1 (b)
6 (b)
11 (b)
16 (b)
21 (c)
26 (b)

2 (d)
7 (a)
12 (c)
17 (c)
22 (c)
27 (c)

3 (a)
8 (b)
13 (a)
18 (b)
23 (c)
28 (a)

4 (b)
9 (b)
14 (c)
19 (a)
24 (b)
29 (c)

5 (d)
10 (b)
15 (a)
20 (c)
25 (d)
30 (c)