21. The following is a statement showing the financial status of the company at any given time (A) Trading account (B) Balance sheet (C) Profit and Loss statements (D) Cash book 22. The following is (are) the current liability (ies) (A) Bills payable (B) Outstanding expenses (C) Bank overdraft (D) All of the above 23. Which of the following statements is incorrect? (A) Assets - Capital = Liabilities (B) Liabilities + Assets - Capital (C) Liabilities + Capital - Assets (D) Assets - Liabilities - Capital 24. Which of the following is not an asset? (A) Buildings (B) Debtors (C) Loan from K Harris (D) Cash balance 25. Which of the following is a liability? (A) Motor Vehicles (B) Machinery (C) Creditors for goods (D) Cash at Bank 5/ Page 26. Which of the following is incorrect? Assets (GHS) Liabilities (GHS) (A) 7,850 1,250 (B) 8200 2,800 (C) 9,550 1,150 (D) 6,540 1,120 Capital (GHS) 6,600 5,400 8,200 5,420 27. Which of the following statements is correct? Accounts To Record Entry in the account 0 Assets An increase Debit A Decrease Credit (11) Capital An increase Debit A decrease Credit (iii) Liabilities An increase Credit A decrease Debit 28. Which accounting concept satisfy the valuation criteria? (A) Going concern, Realisation, Cost (6) Going concern, Cost, Dual aspect (C) Cost, Dual aspect, Conservatism (D) Realisation, Conservatism, Going concern. 29. A trader has made a sale of GHS 75,500 out of which cash sales amounted to GHS 25,500. He showed trade receivables on 31-3-2014 at GHS 25,500. Which concept is followed by him? (A) Going concern (B) Cost (C) Accrual (D) Money measurement 30. The proprietor of the business is treated as creditor for the capital introduced by him due to __--- concept. (A) Money measurement (B) Cost (C) Entity 6/ Page A/c is credited and (D) Dual aspect 31. If wages are paid for construction of business premises ---- A/c is debited. (A) Wages, Cash (B) Premises, Cash (C) Cash, Wages (D) Cash, Premises 32. Fixed assets are double the current assets and half the capital. The current assets are GHS3,00,000 and investments are GHS4,00,000. Then the current liabilities recorded in balance sheet will be (A) 200,000 (B) 100,000 (C) 300,000 (D) 400,000 33. Matching concept means (A) Assets = capital + liabilities (B) Transactions recorded at accrual concept (C) Anticipate no profit but recognize all losses (D) Expenses should be matched with the revenue of the period 34. Value of goods withdrawn by the proprietor for his personal use should be credited to (A) Capital A/C (B) Sales Alc a year according to-------- (C)Drawings A/C (D) Purchases A/C 35. Small items like, pencils, pens, files, etc. are --Concept. (A) Materiality (B) Consistency (C) Conservatism 7| Page (D) Realizations 36. Which of the following factor is not considered while selecting accounting policies? (A) Prudence (B) Substance over form (C) Accountancy (D) Materiality 37. Debit the receiver & credit the giver is __-- account A) Personal (B) Real (C) Nominal (D) All the above