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Accounting Basics

 1) The golden rule for the Nominal account  is ————–. 
Answer  ::   Debit all expense and losses & Credit all incomes and gains


 2)  According to ————– principle a business is treated as a separate entity that is distinct from  its owner. 
Answer  ::   Business Entity Concept


 3) According to ————– principle only those  transactions which are capable of being expressed in terms of  money are included in the accounting records. 
Answer  ::   Money Measurement Concept


 4)  According to ————- principle the  enterprise is normally viewed as a going concern that is, continuing in operation for the foreseeable  future.  
Answer  ::   Going concern  principle


 5) The Going concern concept  is also known as ————-. 
Answer  ::   Continuity assumption



 6) According to —————- principle  revenues and costs are recognized as they are earned or incurred. 
Answer  ::   Accrual principle


 7) Accrual  principle  is  also known as ————. 
Answer  ::   Revenue  recognition principle


 8)  According to ————- principle the  expenses incurred in an accounting period should be matched  with the revenues recognized in that period.
Answer  ::   Matching principle


 9)  According to ————- principle the  accounting data should be definite, verifiable and free from  personal bias of the accountant. 
Answer  ::   Objectivity principle


 10) —————– assumed that  accounting policies are consistent from one period to another. 
Answer  ::   Consistency concept


 11)  Trading account shows ————- profit. 
Answer  ::   Gross Profit


 12)  Profit and Loss account shows ————– profit. 
Answer  ::   Net Profit


 13)  Balance Sheet is also  known as —————–. 
Answer  ::   Position statement


 14) The Balance Sheet is a ————- but not an ————-. 
Answer  ::   Statement, Account


 15) ————- is one which is not an actual liability but which may become  one on the happening of some uncertain future event. 
Answer  ::   Contingent Liability



 16)  Sales – Cost of Goods sold = —————–. 
Answer  ::   Gross Profit


 17) Gross Profit – Operating expenses = ——————-. 
Answer  ::   Operating Profit


 18)  Operating profit + Non operating incomes – non operating expenses = ————. 
Answer  ::   Net profit


 19) Accounting is defined as —————-. 
Answer  ::   An art of recording, classifying, summering in a significant manner and  in terms of money, transactions and events which are in part at  least, of financial nature and interpreting the results thereof.


 20) The basic sequence in the accounting process can best be  described as ————-. 
Answer  ::   Transactions, Source document,  Journal, Ledger, Trial balance

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Mallikarjuna

Mallikarjuna

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