Quiz: Fundamentals of Accounting

Added to the cash book balance Deducted from the cash book balance Deducted from the bank statement balance Not considered in the reconciliation

By noting them in the reconciliation statement By adjusting the bank statement By ignoring them as they do not affect the balance By making appropriate adjustments in the cash book

To record all sales and purchases To determine the gross profit or loss To summarize all business transactions To calculate the net profit or loss

As a liability in the balance sheet As an expense in the profit and loss account As an asset in the balance sheet As revenue in the profit and loss account

Mixed Account. Nominal Account. Personal Account. Real Account.

It increases the gross profit It decreases the gross profit It decreases the net profit It has no impact on the gross profit

A non-cash transaction is recorded in the cash book. Two or more errors are made that cancel each other out, leaving the trial balance unchanged. An expense is recorded as a revenue. A transaction is omitted entirely from the books.

Opening stock + Purchases - Closing stock Sales + Gross profit Sales - Gross profit Opening stock + Purchases + Closing stock

INR 300,000 INR 150,000 INR 450,000 INR 600,000

It is not recorded; discounts are not financial transactions. In the discount column on the credit side. Directly into the general ledger. In the main cash column on the debit side.