A:-Liability
B:-Asset
C:-Income
D:-Expense
Correct Answer:- Option-B
Question49:-If asset is 1,50,000 and owners equity is 45,000 then liability is
A:-50,000
1,95,000
05,000
D:-50,000
Correct Answer:- Option-C

Question50:-Sale of goods to Manoj is wrongly debited to Madhu A/c instead of Manoj A/c. Both are debtors of business, this
is an example of

A:-Error of omission
B:-Error of commission
C:-Error of principle
D:-Compensating error
Correct Answer:- Option-B
Question51:-Money spent to upgrade machinery is known as
A:-Revenue expense
B:-Capital expense
C:-Deferred revenue expenditure
D:-Administrative expense
Correct Answer:- Option-B
Question52:-Goods of Rs. 1,000 purchased from Mr. "A" were recorded in sales book. The rectification of this error will
A:-Increase the gross profit
B:-Reduce the gross profit
C:-Have no effect on gross profit
D:-None of the given options
Correct Answer:- Option-B
Question53:-An amount of Rs. 5,000 received from Mr. "A" but credited to Mr. "B" would affect
A:-Only B's account
B:-Only cash account
:-Only A's account
D:-Accounts of A and B
Correct Answer:- Option-D
Question54:-What will be debited, if Anup commenced business with cash ?
A:-Capital account
B:-Cash account
C:-Proprietors account
D:-Drawings account
Correct Answer:- Option-B
Question55:-Which among the following is not an element of computer system ?
A:-Hardware
B:-Software
C:-People
D:-Malware
Correct Answer:- Option-D
Question56:-Withdrawal by proprietor would
A:-Reduces assets and increases liabilities
B:-Have no effect on the Balance Sheet
:-Reduces owners equity and increases assets
D:-Reduces both assets and owners equity
Correct Answer:- Option-D
Question57:-Which of the following cannot be a cause for debiting bank account ?
A:-Cheques deposited for collection
B:-Cheque sent to bank dishonoured
C:-Paid into bank
D:-Cheque given to suppliers dishonoured