CBSE Class 11 Accountancy Recording of Transactions - II MCQs Set E

Question: A note sent by the buyer on the return of goods is:
a) Credit Note
b) Return Note
c) Debit Note
d) None of the options
Answer: c

Question: A ______ is sent to a supplier when we return goods.
a) Debit Note
b) Credit Note
c) Proforma Invoice
d) None of the options
Answer: a

Question: What type of Ledger Accounts are not carried forward to the next year?
a) Personal Accounts
b) Real Accounts
c) Nominal Accounts
d) All of the options
Answer: c

Question: What type of following accounts will have debit balance only?
a) Personal Accounts
b) Real Accounts
c) Nominal Accounts
d) All of the options
Answer: b

Question: Closing entries are passed:
a) in the beginning of the accounting year
b) at the end of the accounting year
c) in the middle of the accounting year
d) anytime during the year
Answer: b

Question: Which of the following transactions is entered into the Journal Proper?
a) Cash Payment to an employee for expenses
b) Cash purchase of goods for resale
c) Correction of an error
d) Credit purchase of goods for resale
Answer: c

Question: Which of the following expenses is not a revenue expense?
a) Salary
b) Electricity
c) Water
d) Repair of second-hand machinery purchased
Answer: d

Question: Which of the following describes the classification and normal balance of the Unearned Rent Revenue account?
a) Asset, debit
b) Liability, credit
c) Revenues, credit
d) Expense, debit
Answer: b

Question: A debit is NOT the normal balance for which account listed below?
a) Revenue
b) Cash
c) Accounts Receivable
d) Dividends
Answer: a

Question: Which of the following are part of the recording process?
a) Analyzing transactions
b) Entering transactions in a journal
c) Posting journal entries
d) All of the options
Answer: d

Question: The first book of original entry is:
a) Journal
b) Ledger
c) Trial Balance
d) None of the options
Answer: a

Question: Powers Corporation received a cash advance of $500 from a customer. As a result of this event:
a) Assets increased by $500 (Debited)
b) Equity increased by $500 (Credited)
c) Liabilities decreased by $500 (Debited)
d) Both assets and equity increased by $500 (Debited and Credited)
Answer: a

Question: When a company performs a service but has not yet received payment, it:
a) Debits Service Revenue and credits Accounts Receivable
b) Debits Accounts Receivable and credits Service Revenue
c) Debits Service Revenue and credits Accounts Payable
d) Makes no entry until cash is received
Answer: b

Question: Which accounts normally have credit balances?
a) Revenues, liabilities, and dividends
b) Revenues, liabilities, and assets
c) Revenues, liabilities, and retained earnings
d) Revenues, liabilities, and expenses
Answer: c

Question: Which of the following steps in the accounting process is done after analyzing business transactions?
a) Preparing the financial statements
b) Preparing a trial balance
c) Entering transactions in a journal
d) Posting journal entries
Answer: c

Question: The right side of a T-account is:
a) The balance of an account
b) The debit side
c) The credit side
d) Blank
Answer: c

Question: The Sales Return Book always has ______ balance:
a) Debit
b) Either debit or credit
c) Credit
d) None of the options
Answer: a

Question: Which of the following accounts is increased with a debit?
a) Land
b) Service Revenue
c) Interest Payable
d) Common Stock
Answer: a

Question: Debits:
a) Increase both assets and liabilities
b) Decrease both assets and liabilities
c) Increase assets and decrease liabilities
d) Decrease assets and increase liabilities
Answer: c

Question: The primary purpose of the trial balance is to
a) disclose the complete effect of a transaction in one place.
b) make sure a journal entry is not posted twice.
c) transfer journal entries to the ledger accounts.
d) prove the equality of the debit and credit amounts after posting.
Answer: d