[amp_mcq option1=”Recording in preliminary books” option2=”Preparation of profit and loss account” option3=”Calculation of net profit” option4=”Writing partnership deed” correct=”option1″]<\/p>\n
Bookkeeping is the process of recording and summarizing financial transactions. It is the foundation of accounting and is essential for businesses of all sizes. Bookkeeping involves recording all income and expenses, as well as assets and liabilities. This information is then used to prepare financial statements, such as the income statement and balance sheet. Bookkeeping is also used to track cash flow and identify trends in financial performance.<\/p>\n
The correct answer is A. Recording in preliminary books.<\/p>\n
Preliminary books are the first set of books that a business uses to record its financial transactions. These books are typically called the journal and the ledger. The journal is used to record all financial transactions in chronological order. The ledger is used to summarize the transactions from the journal and to track the balances of accounts.<\/p>\n
B. Preparation of profit and loss account is not bookkeeping. The profit and loss account is a financial statement that shows a company’s revenues, expenses, and net income. It is prepared after the bookkeeping process is complete.<\/p>\n
C. Calculation of net profit is not bookkeeping. Net profit is a company’s total revenue minus its total expenses. It is calculated after the bookkeeping process is complete.<\/p>\n
D. Writing partnership deed is not bookkeeping. A partnership deed is a legal document that outlines the terms of a partnership. It is not related to bookkeeping.<\/p>\n","protected":false},"excerpt":{"rendered":"
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