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Accounting Basics

 1)  The trial balance is -----------. 
Answer  ::   The list of the  balances of all active accounts

 2) An economic event that involves transfer of money or money’s worth is -------------. 
Answer  ::   Financial transaction

 3) Drawing represents cash withdrawn  for personal use and goods withdrawn for personal use by the ----------. 
Answer  ::   Owner

 4) A person who owes money  of the firm is a -----------. 
Answer  ::   Debtor

 5) Financial Accounting, Management Accounting,  Cost Accounting, Social Responsibility Accounting, Human Resource Accounting are the ------------ of accounting. 
Answer  ::   Sub fields

 6) Fundamental accounting assumption  as per AS-1 is  ----------------------.
Answer  ::   Going Concern, Consistency & Accrual

 7) Economic life of an enterprise is artificially split into periodic intervals in accordance with -------. 
Answer  ::   Periodicity Principle

 8)  Materiality principle is an  exception to the ---------------. 
Answer  ::   Full disclosure principle

 9) Personal transactions are distinguished from business transaction, in accordance with --------------. 
Answer  ::   Business  entity principle

 10) Appending notes to the financial statement is in accordance with ------------.
Answer  ::   Full disclosure principle

 11)  Revenue from  sale of products is generally realized in the period -----------.
Answer  ::   In which sale is made

 12)  Fixed assets are held in the business for the purpose of -------------. 
Answer  ::   Earning revenue

 13) As in India are issued by the ------------------. 
Answer  ::   ICAI

 14)  It is essential to standardize the accounting principle and policies in order to -------------------.
Answer  ::   Comparability

 15)  Ensure Transparency, Consistency, and  In double entry system  of book keeping every business transactions affects  -------------. 
Answer  ::   Two  accounts

 16) Journal is the book of -------------. 
Answer  ::   Original entry

 17) Ledger is the book  of ----------------. 
Answer  ::   Secondary entry

 18) Prepaid salary account is a --------------. 
Answer  ::   Personal account 

 19) Salary account is  -------------------.  

Answer  ::   Nominal account

 20) Outstanding salary account is a -----------------------.
Answer  ::   Personal account