Financial Accounting MCQs

contra entry is the term that matches the description: an entry affecting both cash and bank columns in a cash book

liability refers to a present obligation expected to require an outflow of resources

provision refers to an estimated liability of uncertain timing or amount

credit is the term that matches the description: the right side of a ledger account

debit refers to the left side of a ledger account

accrual is the term that matches the description: recognition of income or expense when earned or incurred rather than only when cash moves

expense is the term that matches the description: a cost consumed in earning revenue

liability is the term that matches the description: a present obligation expected to require an outflow of resources

net profit refers to profit remaining after all relevant expenses

expense refers to a cost consumed in earning revenue

current ratio is the term that matches the description: current assets divided by current liabilities

consistency is the term that matches the description: using accounting policies consistently across periods unless change is justified