10. Which of the following best describes the meaning of ‘Purchases’?
11. Which of the following is a liability?
12. $50 cash taken from cash till and banked is entered:
13. The Basic accounting equation is:
14. Every business transaction affects at least ________ accounts:
15. The most common imprest system is the ________ system:
16. Is it true that the trial balance totals should agree?
· The correct answer is
It is a list of balances on the books
The trial balance shows the list of all debit or credit balance of the books.
The other options are not correct. It does not show entries. Balance sheet shows financial position.
10) The correct answer is
Goods bought for resale
Purchase is basically related to goods for resale
Goods bought on credit can be for consumption also, Items can also be for internal use, hence other options are not correct.
11) Accounts payable for goods is a liability
Other are assets not liability.
12) Here the correct answer is
Debit bank column 50 and credit cash column 50
13) The basic accounting equation is
Asset = Capital (equity) + Liability
asset shoudl be equal to equity plus external liability.
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