1. What is meant by the term "General Accounting Equation: a. Assets = Liabilities + Stockholders' Equity. b. Revenues - Expenses = Net Income. c. Current Assets + Non- Current Assets = Total Assets. 2. Nominal accounts are : a. Assets, liabilities and stockholders' equity. b. Revenues and expenses. c. Assets and expenses versus liabilities, stockholders 'equity and revenues. 3. All the followings are accounting assumptions except: a. Monetary measurement. b. Periodicity. c. Historical cost. d. Going concern. 4. All the followings are accounting principles except: a. Matching expenses with revenues b. Revenue recognition c. Full disclosure 3. Whar stare correct order of accounting cycle for recording of transactions: a. Joumals, then ledgers, then trail balance, then income statement b. Ledgers, then joumals, then trail balance, then income statement c. Joumals, then trail balance, then ledgers, then income statement d. Joumals, then trail balance, then income statement then ledgers 6. In cash base accounting, companies recognize: a. Expenses when paid, and revenues when received b. Expenses when paid, and revenues when eamed c. Brpenses when used, and revenues when received d. Expenses when used, and revenues when eamed 7. The main equation in the income statement is: 2. Gross income - administrative and selling expenses = Net income or loss b. Sales - cost of goods sold - all expenses = Net income or loss c. Beginning inventory + purchases - ending inventory = Cost of goods sold d. Sales - sales discount - sales retums = Net sales 8. Regarding nominal and real accounts, which a statement is correct: a. Nominal accounts will be carried forward to coming periods whereas real accounts will be closed in the profit and loss account at the period end b. Real accounts will be carried forward to coming periods whereas nominal accounts will be closed in the profit and loss account at the period end c. Both real accounts and nominal accounts will be closed in the profit and loss account at the period end d. Both Real accounts and nominal accounts will be carried forward to coming periods 9. Which of the following statements is correct regarding current assets items: a. Cash, receivables, creditors, inventory, and prepaid expenses b. Cash, receivables, bank loans, inventory, and prepaid expenses c. Cash, receivables, inventory, and short term investments d. Cash, receivables, inventory, stockholders' equity and prepaid expenses 10. According to revenue recognition principle, revenue will be recognized: a. When the company receives cash or cheque for the sales b. When the company pays cash or cheque for the purchase c. When the company delivers goods or provides services for the clients d. When the company receives goods or services from the suppliers