Practice Test


Q1) Profit _______ the capital at the end of the year. Show Answer


Q2) Single entry is always _________ double entry. Show Answer


Q3) To financial status, statement of _______ is maintained. Show Answer


Q4) Opening capital = closing capital -______. Show Answer


Q5) Statement of Affairs shows _______ & liabilities. Show Answer


Q6) Interest on partner's loan shall not exceed _______ % in absence of specific provision. Show Answer


Q7) Excess of assets over liabilities is _______. Show Answer


Q8) Under Statement of Affairs method, net profit/net loss is ascertained by _______. Show Answer


Q9) Capital at the beginning of the year is ascertained by preparing Show Answer


Q10) Under Single Entry System, one of the following accounts maintained is Show Answer


Q11) While preparing statement of Profit or loss, drawings made during the year is Show Answer


Q12) Single Entry System of accounting shows Show Answer


Q13) Single Entry System is defective because under this system Show Answer


Q14) The method or system followed to record business transaction in the books of accounts is called _______ book keeping system. Show Answer


Q15) In _______ book-keeping system, for every business transaction we find two account. Show Answer


Q16) _______ is a statement in which balances of various ledger accounts are recorded. Show Answer


Q17) List of all assets and liabilities is called ________. Show Answer


Q18) The difference between the capital at the end of the year and capital at the beginning of year is called ________. Show Answer


Q19) Only the ________ system is a proper system of book-keeping. Show Answer


Q20) The closing capital of a single entry trader on 31st March,2006 was Rs.25,000 where it was Rs.18,000 as on 1st April,2005 the profit of a trader is ________. Show Answer


Q21) Asset = Capital + ________. Show Answer


Q22) ________ is a statement similar to Balance sheet showing assets & liabilities of a single entry trader as on particular date. Show Answer


Q23) A statement of affairs is a summarised statement of ________. Show Answer


Q24) A statement of ________ is to be prepared in an order to find out the profit or loss made by a single entry trader. Show Answer


Q25) In order to find out the correct profit, drawing is _________ to the closing capital. Show Answer


Q26) Further capital introduced during the year is _______ from closing capital in order to find out the correct profit. Show Answer


Q27) Single entry system is more popular for _______. Show Answer


Q28) Under the net worth method, the basis for ascertaining profit or loss is the difference between _______. Show Answer


Q29) Under Single entry system, it is not possible to prepare ________. Show Answer


Q30) The capital at the end of the accounting year is ascertained by preparing _______. Show Answer


Q31) Under Single entry system, additional capital brought in during the year is _______ closing capital, in order to calculate profit. Show Answer


Q32) If opening capital is Rs.50,000 ; closing capital is Rs.70,000 ; withdrawals are Rs.10,000 and fresh capital brought in is Rs.5,000 profit is ________. Show Answer


Q33) Capital = Assets Less ________. Show Answer


Q34) The opening capital is greater than the closing capital, then the difference is ________. Show Answer


Q35) Single entry system is an ________ record. Show Answer


Q36) Single entry system is a scientific method of accounting. Show Answer


Q37) Trial Balance can be prepared under single entry system. Show Answer


Q38) Like Double entry, single entry is not useful for large business community. Show Answer


Q39) There is no difference between the balance sheet and the statements of affairs. Show Answer


Q40) The difference between the amounts of assets and liabilities is taken as capital. Show Answer


Q41) Under single entry, both the aspects of transactions are recorded in the books of accounts. Show Answer


Q42) In single entry and Double entry both, Balance sheet shows financial position of business. Show Answer


Q43) Drawings made during the year are added to closing capital of the proprietor. Show Answer


Q44) In absence of specific provision in partnership deed no partner is allowed any salary or commission. Show Answer


Q45) Statement of Affairs at the end of the year indicates opening capital. Show Answer


Q46) Errors during the accounting can be easily detected in single entry system. Show Answer


Q47) Depreciation on fixed assets are not considered in methods of single entry. Show Answer


Q48) Cash book and Personal accounts are properly prepared in single entry accounting method. Show Answer


Q49) An excess of closing capital over opening capital is considered as profit. Show Answer


Q50) Trading and Profit and Loss Account is maintained under the single Entry system. Show Answer


Q51) Sole proprietor and partners prefer to keep books on single entry. Show Answer


Q52) Double entry system is a system where the rules of debit and credit are adopted. Show Answer


Q53) Single entry method is costly method of accounting. Show Answer


Q54) Single entry system is followed by private limited company. Show Answer


Q55) Interest on loan shall not exceed 9% p.a. Show Answer


Q56) Net profit increases the capital while net loss decreases the capital of proprietor. Show Answer


Q57) According to Kohler, single entry system is a perfect accounting method for all. Show Answer


Q58) There is no difference between the Balance sheet and statement of profit and loss. Show Answer


Q59) The proprietor"s drawings do not affect the profit of loss. Show Answer


Q60) Profit and loss account and balance sheet must be prepared scientifically under single entry system. Show Answer


Q61) Additional capital is also called as a fresh capital. Show Answer


Q62) single entry system is not at all a system of book keeping accurately. Show Answer


Q63) Double entry system are not accurate and perfect to reveal actual position. Show Answer


Q64) Single entry system is more economical than Double entry system. Show Answer