MCQs commerce
1. Debit means:
A. Decrease in asset
B. Increase in liability
C. An entry on the left hand side of an account
D. Moderate increase in liability
Answer : C
2. Drawings account is related to:
A. Nominal account
B. Personal account
C. Real account
D. Company drawings account
Answer : B
3. Goodwill account is related to:
A. Nominal account
B. Personal account
C. Real account
D. Tangible account
Answer : C
4. Prepaid insurance is:
A. Nominal account
B. Personal account
C. Real account
D. Prepaid account
Answer : b
5. Revenue is considered as being earned when:
A. Cash is received
B. Production is done
C. Sale is effected
D. Purchase is done
Answer : c
6. Goods destroyed by fire should be credited to:
A. Purchases account
B. Sales account
C. Loss of goods by fire account
D. Insurance account
Answer : A
7. The credit balance of bank account indicates:
A. Amount payable by the bank
B. Amount payable to the bank
C. Cash at bank
D. Loan from bank
Answer : B
8. The credit balance in the bank account is:
A. An asset
B. A liability
C. An expense
D. Contingent liability
Answer : B
9. Return outward book makes a record of:
A. Goods returned to the suppliers
B. Goods returned to customers
C. Goods returned to proprietor
D. Goods returned to neighbours
Answer : A
10. Cash book prepared on imprest system is:
A. Two column cash book
B. Cash book
C. Petty cash book
D. Purchase book
Answer : C
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