16. A cheque is a A. Is a form which must be completed when lodging money into bank account? B. Must always be crossed. C. Is an instruction to your bank to pay money out of your current account? D. None of above. 17. The nominal ledger is also known as general ledger and it is: A. The book from which the trial balances is extracted. B. A book of original entry. C. The book in which transactions are first recorded. D. None of above. 18. Stock should be included in the balance sheet at: A. Its cost B. Its net realizable value. C. The lower of total cost and its total net reaisable value. D. The lower of cost and its net reaisable value on item by item or category by category basis. 19. A bank reconciliation statement is a statement which A. Is sent by banks to their customers. B. Is sent by banks to any of their customers who exceed their agreed credit limit with the bank. C. Explains the difference between the bank balances shown in a firm's accounting record. D. None of the above. 20. The accounting concept which prevents firms from frequently changing the stock valuation method they use, thereby preventing them from manipulating the figures in their profit and loss accounts and balance sheet is: A. The materiality concept. B. The consistency concept. C. The prudence concept. D. The going concern concept. 21. The purpose of a firm preparing a bank reconciliation statement is: A. To ascertain the amount of financing, if any, which it may require in the future. B. To ascertain whether bank charges have been correctly calculated by the bank. C. To ascertain whether the correct amount of interest has been paid to the firm by the bank on all money on deposit. D. To reconcile the bank balance in the firm's accounting records at a particular date with that shown on its bank statement at the same date. 22. Which of the following is capital expenditure? A. The cost of repairing a vehicle. B. The cost of acquiring a vehicle for resale. C. Proceeds arising from the sale of a van which had been used in the business to make deliveries to customers. D. The cost of a new vehicle acquired for continuing use in the business. 3