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A) Cash
B) Bank statement
C) Transaction
D) Exchange of money
Q-3 Identify the correct sequence of accounting process
A) CommunicatingRecordingIdentifying
B) RecordingCommunicatingIdentifying
C) Identifyingcommunicatingrecording
D) Identifyingrecordingcommunicating
Q-6 For which step of accounting process the accountants of business entity
prepare financial statements?
A) Identification of economic event
B) Communication of financial information
C) Recording financial information
D) Making decisions about business
Q-7 Keeping the log of financial information in books of original entries is called
A) Recording
B) summarizing
C) Grouping
D) Processing
A) Partnership
B) Sole proprietorship
C) Company
D) Non-profit organization
A) Resources
B) Obligations
C) Future benefits
D) Expenses
Q-16 ________ is the gross inflow of economic benefits
A) Assets
B) Liabilities
C) Income
D) Expenses
Q-17 The gross decrease in economic benefits for the business are what?
A) Expenses
B) Obligations
C) Creditors
D) Income or gain
Q-18 An asset must be _______ by the business to be shown as an asset in its
"balance sheet"
A) Possessed
B) Owned
C) Controlled
D) Used
Q-19 Liability are arisen from which of the following events?
A) Present event
B) Future event
C) Past event
D) Non of them
Q-20 Which of the following can be considered as the most important phase of
accounting cycle and it is the primarily objective of financial accounting?
A) Identifying transactions
B) Preparing "T Accounts"
C) Preparing financial statements
D) Preparing trial balances
Q-21 Which is the most important characteristic that all assets of a business
have?
A) Long life of assets
B) Value of assets
C) Intangible nature of assets
D) Future economic benefits
Q-22 What is the basic accounting equation?
A) Capital+Liabilities=Assets
B) Assets+ liabilities =Capital
C) Capital+assets=liabilities
D) Liabilities+Capital
Q-23 Which of the following is a liability?
A) Cash
B) Equipment
C) Debtors
D) Creditors
Q-24 What is equity?
A) Cash from the business
B) liability of a business
C) Owner's claim on total assets
D) Owner's claim on total liabilities
Q-25 Identify the asset from the following
A) Cash and cash equivalent
B) Creditors
C) Notes payable
D) Bank loan
Q-26 _______ the withdrawal of cash and goods by the owner of the business for
his/her personal use
A) Depreciation
B) Drawings
C) Outflow of cash
D) Appreciation
Q-27 Net loss occurs when
ANSWERS:
1 A 2 C 3 D 4 C 5 D 6 B 7 A 8 B 9 C 10 D
11 A 12 A 13 C 14 A 15 B 16 C 17 A 18 C 19 C 20 C
21 D 22 A 23 D 24 C 25 A 26 B 27 A 28 C 29 D 30 D
B) Sales journal
C) Purchases return journal
D) Sales return journal
Q-2 Sales on credit is recorded in which of the following journal?
A)
B)
C)
D)
Purchase journal
Sales journal
Purchases return journal
Sales return journal
Q-3 Transactions that a BUSINESS doesn't record in any specialised journal are
recorded in which of the following journals or day books?
A)
B)
C)
D)
Specialized journal
Day book
Cash book
Record book
Q-5 Which of the following specialised journals will record "goods returned by
the BUSINESS "?
A)
B)
C)
D)
Purchase journal
Sales journal
Purchases return journal
Sales return journal
Credit sales
Credit purchases
Credit sales and purchases
Cash sales and purchases
Purchase journal
Sales journal
Cash receipts
Cash payments journal
Q-8 Which of the following is a type of cash receipt journal + cash payment
journal?
A)
B)
C)
D)
Bank statement
Statement of cash flow
Cash book
Cash documents
Purchase journal
Sales journal
Purchases return journal
Cash payments journal
Narration
Explanation
Summary
Other information
11. Credit purchase of plant and machinery is recorded in which of the following
journals?
A)
B)
C)
D)
General journal
Cash journal
Purchase journal
Purchase return journal
12. Debit note is the basis for recoding a transaction in which of the following
journals?
A)
B)
C)
D)
General journal
Cash journal
Purchase journal
Purchase return journal
13. SALE of old furniture" will be recorded in which of the following specialised
journals?
A)
B)
C)
D)
Purchase journal
Sales journal
General journal
Cash receipt journal
14. Credit note is the basis for recording a transaction in which of the following
SPECIALIZED journals?
A)
B)
C)
D)
Purchase journal
Sales return journal
General journal
Cash receipt journal
15. Specialized journals are more adequate for which TYPE OF BUSINESSES ?
A)
B)
C)
D)
Small businesses
Big businesses
Sole proprietorship
Partnership
16. Which of the following is known as an evidence that a transaction took place?
A)
B)
C)
D)
17. BUSINESS paid rent amounting to $100" which of the following specialized
journals records this transaction?
A) Cash receipts journal
B) Cash payments journal
C) Sales journal
D) Purchase journal
Q-18 Credit memo or credit note No. is entered in which of the following journal?
A)
B)
C)
D)
General journal
Cash journal
Purchase journal
Sales return day book
ANSWER:
1 D 2 B 3 D 4 B 5 C 6 D 7 C 8 C 9 D 10 A
11 A 12 A 13 C 14 B 15 B 16 C 17 B 18 A.