Introduction to Accounting Page-3

21) The unsold merchandise of business on particular day is called
(A) Purchase Return
(B) Stock / Inventory
(C) Bad Debts
(D) Sales Return

22) The discount allowed by the wholesaler to the retailer on the immediate payment of cash
(A) Trade Discount
(B) Cash Discount
(C) Discount Allowed
(D) Discount Received

23) Any written evidence in support of business transaction is called
(A) Cash memo
(B) Invoice
(C) Voucher
(D) None of these

24) Assets, which have physical existence, are called
(A) Tangible Assets
(B) Intangible Assets
(C) Quick Assets
(D) Current Assets

25) A document given by the seller to buyer for credit sales is called
(A) Cash memo
(B) Voucher
(C) Invoice
(D) None of these

26) The liability arising from the purchase of goods on credit is called
(A) Creditors
(B) Accounts Receivable
(C) Loan
(D) Payable expenses

27) The complete process of accounting is called
(A) Journalizing
(B) Posting
(C) Summary
(D) Accounting Cycle

28) The discount calculated on list price of goods is called
(A) Cash Discount
(B) Rebate
(C) Trade Discount
(D) None of these

29) Accounting is the language of
(A) Government
(B) Commerce
(C) Trade
(D) Business

30) All events of business are measured in terms of
(A) Money
(B) Ethical Value
(C) Units
(D) Goods

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