Financial Accounting - Questions & Answers for Competitive Exams | GkSeries

37. Subscription received but not yet earned is considered as an

• [A] Asset.
• [B] Liability.
• [C] Income
• [D] none of the above.

Answer: Option [B]

38. Total creditors account is prepared to find out _______.

• [A] opening balance of debtors .
• [B] closing balance of debtors.
• [C] opening balance of creditors.
• [D] closing balance of creditors.

Answer: Option [D]

39. A bills receivable account is prepared to ascertain bills _______

• [A] accepted.
• [B] received.
• [C] drawn.
• [D] endorsed.

Answer: Option [B]

40. Bills receivable dishonored will be posted to _______ side of debtors account.

• [A] debit.
• [B] credit.
• [C] outside.
• [D] inside.

Answer: Option [A]

41. Bills payable dishonoured will be posted in which side of bills payable account?

• [A] Debit.
• [B] Credit.
• [C] Outside.
• [D] none of the above.

Answer: Option [C]

42. Opening balance of creditors will be posted in which side of creditors account?

• [A] Debit.
• [B] Credit.
• [C] Outside.
• [D] Inside.

Answer: Option [D]

43. Cash account opening balance will appear in _______.

• [A] debit.
• [B] credit.
• [C] outside.
• [D] inside.

Answer: Option [A]

44. Bills payable account opening balance will appear in ____________.

• [A] debit.
• [B] credit.
• [C] outside.
• [D] inside.

Answer: Option [D]

45. Bills receivable account opening balance will appear in _________.

• [A] debit.
• [B] credit.
• [C] outside.
• [D] none of the above.

Answer: Option [A]

46. Under which system, ownership is transferred on payment of final installment?

• [A] Installment system.
• [B] Credit system
• [C] Hire purchase system.
• [D] Cash system.

Answer: Option [C]

47. Under hire purchase system the buyer is called _________.

• [A] buyer.
• [B] hirer.
• [C] hire vendor.
• [D] none of the above.

Answer: Option [B]

48. Under hire purchase system the relationship of hirer and hire vendor is _________.

• [A] buyer and seller.
• [B] bailor and bailee.
• [C] pawner and pawnee.
• [D] none of the above.

Answer: Option [B]