Tag Archives: Accounting

Objective Type Questions for Principle of Commerce I.Com Part 1 (j)

Objective Type Questions for Principle of Commerce I.Com Part 1 (j)

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Rectification of Errors Important Question 3 for I.Com Part 1

Rectification of Errors Important Question 3 for I.Com Part 1 Correct the following errors by passing journal entries (i) The purchase book was under casted Rs. 1,000. (ii) Machinery bought Rs.1,000 posted as purchases. (iii) Sales book was overcastted Rs. 550. (iv) Sold old furniture for Rs.250 passed through the day book. (v) Carriage on machinery Rs. 500 has been …

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Define accounting

Define accounting The action or process of keeping financial accounts Or The systematic and comprehensive recording of financial transactions pertaining to a business. Accounting also refers to the process of summarizing, analyzing and reporting these transactions. The financial statements that summarize a large company’s operations, financial position and cash flows over a particular period are a concise summary of hundreds …

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Define deferred revenue expenditure

Define deferred revenue expenditure Deferred Revenue Expenditures are those expenditures which have been incurred in an accounting period and they do not create any assets but their benefit is spread in more than one accounting period Ex. Advertisement Cost

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What is Current Account?

What is Current Account? That part of the balance of payments recording a nation’s exports and imports of goods and services and transfer payments. Or The difference between a nation’s total exports of goods, services and transfers, and its total imports of them. Current account balance calculations exclude transactions in financial assets and liabilities. Source: http://www.investopedia.com/terms/c/currentaccount.asp

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What is Entry?

What is Entry? 1. Accounting: Record of a financial transaction in its appropriate book of account. See also journal entry. 2. Importation: Popular term for customs entry. 3. Law: Act, privilege, or right to enter a premise. 4. Record keeping: Heading in an index under which a record is located and can be searched and identified. Source: http://www.businessdictionary.com/definition/entry.html#ixzz2XIrvpeR5

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Define Creditors

Define Creditors Creditor is an expression used in the accounting world to specify a party who has delivered a product, service or loan, and is owed money by one or more debtors. Source: http://www.e-conomic.co.uk/accountingsystem/glossary/creditor Or A party to whom money is owed Common classifications of a creditor include (1) Secured: who has a legal right to take a specific property …

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What is Accounting Period?

What is Accounting Period? Period for which a firm prepares its internal or external accounts; the period covered by the financial statements. For internal accounts, it may be a month or a quarter; for external accounts it is normally a period of 12 months. Source: http://www.businessdictionary.com/definition/accounting-period.html#ixzz2XFdXDPWT Or The time span in which certain financial events took place. The accounting period …

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Objective Type Questions for Principle of Accounting I.Com Part 1 (a)

Objective Type Questions for Principle of Accounting I.Com Part 1 Test 1

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