2. If an accumulated provision for depreciation account is in use then the entries for the year's depreciation would be Credit Provision for Depreciation Account debit Income Statement Credit Asset Account, debit Provision for Depreciation Account Debit Asset Account credit Income Statement Credit Income Statement, debit Provision for Depreciation Account d 3. The practice of relating costs and revenue to a particular period for which the measurement of income is derived is known as: Matching principle b. Going concern assumption Conservatism convention d. Revenue recognition 4. Cash, accounts receivables inventories, deposits, prepaid expenses are current assets on the balance sheet b a reliabilities on the balance sheet are classifications of stockholders' equity none of the above 5 Which of the following is a capital expense? a Drawings b. Rent and rates Salaries d. Purchase of a motor van Which of the following is a record of all the account balances at the year end and is used to prepare the final accounts? Atrial balance b. A statement of financial position Astatement of cash flows d. An income statement During the year ended 31 December, the business made sales of $45.000 and purchases of E25,000. The inventory at the beginning of the year was valued at ERODD and at 31 December 14 SOD. The gross profit for the year was 23.500 20 000 E16.500. d. 132.500. B Chandra's bakery business has the followine a t han e mber me n s and decrease accounts payable by 14. Mart bought a delivery van for 14,000 on 1 July 2012 it is expected to have a useful life of 4 years and a value at the end of that time of 63.000. If depreciation is to be provided at 30% on the reducing balance basis the depreciation charge for the year ended 30 June 2014 will be 2940 1.260 4.200 d. 2310 15. Which of the following would be the transaction which decreases both the assets and the abilities? A vehicle was acquired paying $32000 A 25000 was settled Goods we chased for serem Onder $12000 d. Received a c o stro acredit come friend is the de g ree once the correct ledger account and once in the wrong person's account atraction is not recorded in the d e tracting records either the debatter or the credit catry for a particular transaction is recorded in the words of led act. d. None of the above 17. the decline the book value of non-current assets as a result of them being depreciated using the straight line method of depreciation h the decline in the book value of non-current assets as a result of them being depreciated using the reducing balance method of depreciation the decline in the value of non-current as a result of them becoming outdated by technological improvement and invention d. None of the above 18. On 31 March the balance brought down on a firm's bank account in its ledger was 3.600 credit. At the same date outstanding cheques amounted to 1,400 and outstanding lodgements amounted to $2.000. A cheque for 500, received from a debtor was subsequently dishonoured. The receipt of the cheque had been correctly recorded but entry has yet been made in the accounting records in respect of being dishonored on the basis of the above the balance on the firm's han March 4200 evra 3.500 credit 4.700 overra d. 23.700 credit met of 19. A sole trader is good for those which had cost $300 Which the accounting equation will change due to this transaction Astandes Astand capital Capital and i ts d Assets only 20. In which book of original entry would discounts allowed be recorded? a Sales day book Purchases day book Cash book d journal 21 When herri eronnut he has he w