Buildings account is debited with an amount towards repairs. This is an example of?

A. Error of commission
B. Error of principle
C. Error of omission
D. Compensating error

The amount payable to a person as consideration for the use of rights vested in him is

A. Dividend
B. Royalty
C. Purchase consideration
D. Installment

Which of the following methods is not a practical way of realizing revenue?

A. Delivery method
B. Percentage-of-completion method
C. Production method
D. Moving average method

A few errors committed in Ahhiwalia’s books of account are given below. State which errors would affect the Trial Balance.

(a). sales of `950 to ram completely omitted from books of account
(b). purchases of `720 from shyam entered in the purchases journal as `700
(c). purchases journal is overcast by `1,000
(d). sales returns journal is undercast by `200

Closing stock is generally valued at______________?

A. Cost price
B. Market price
C. Cost price or market price whichever is higher
D. Cost price or market price whichever is lower

Which of the following is true regarding closing entries?

A. They must be followed by reversing entries
B. They transfer the balances in all of the nominal accounts to the trading and profit and loss account
C. They must be made after the reversing entries but before the adjusting entries
D. They must be made after the adjusting entries but before the reversing entries

Amount paid to Masood posted to the credit side of his account would affect___________?

A. Masood’s account
B. Cash account
C. Cash account and gagan’s account
D. None of these

A chart of accounts generally start with which of the following types of accounts?

A. Assets accounts
B. Liability accounts
C. Cash accounts
D. Revenue accounts

The first step in accounting process is___________?

A. Recording the transaction
B. Identifying the transaction
C. Posting the transaction
D. Preparing the source documents

Discount for quick repayment of debt is normally referred as____________?

A. Trade discount
B. Prompt payment discount
C. Cash discount
D. Bulk discount