Question
61. Which of the following is a liability? A. machinery B. accounts payable from goods C. motor vehicles D. cash at bank 62. If an
61.
Which of the following is a liability?
A. machinery
B. accounts payable from goods
C. motor vehicles
D. cash at bank
62. If an expense has been incurred but not yet paid, which of the following statements is correct?
A. Expenses account needs to be credited.
B. Expenses account needs to be debited.
C. The expenses accured account need to be debited.
D. The expenses in advance account needs to be debited.
63. Which of the following are correct?
Accounts
To record
Entry in the account
I. Assets
an increase
a decrease
Debt
Credit
II.Capital
an increase
a decrease
Debit
Credit
III.Liabilities
an increase
a decrease
Credit
Debit
A. I and II only.
B. II and III only.
C. I and III only.
D. I, II and III only.
64. Which of the best describes a balance sheet?
A. An account proving the book balance
B. A record of closing entries
C. A listing of balances
D. A statement of assets.
65. 'Posting' the transactions in the bookkeeping means
A. Making the first entry of a double entry trasaction
B. Entering items in a cash book
C. Making the second entry of a double entry transaction
D. Something other than the above
66. Discounts received are
A. Deducted when we receive cash
B. Given by us when we sell goods on credit
C. Deducted by us when we pay our accounts
D. None of these
67. What is the effect of accrued revenues on the statement of financial position?
A. Increase in current asset
B. Increase in current liability
C. Decrease in current asset
D. Decrease in current liability.
68. When the financial statements are prepared, the Bad Debts Account is closed by a transfer to the
A. Balance Sheet
B. Profit and Loss Account
C. Trading Account
D. Allowance for Doubtful Debts is created
69. The journal is
A. Part of the double entry system
B. A supplement to the Cash Book
C. Not part of the double entry system
D. Used when other journals have been mislaid
70. Errors are corrected via the journal because
A. It saves the bookkeeper's time
B. It saves entering them in the ledger
C. It is much easier to do
D. It provides a good record explaining the double entry records.
71. 14. If the two total of trial balance do not agree, the differences must be entered in
A. The Income Statement
B. A Suspense Account
C. A Nominal Account
D. The Capital Account
72. 15. Transactions are initially recorded in the
A. General Ledger.
B. Balance Sheet
C. General Journal
D. Trial Balance
73. 16. Is it true that the trial balance totals should agree?
A. No, there are sometimes good reasons whey they differ
B. Yes, except where the trial balance is extracted at the year end
C. Yes, always
D. No, because it is not a balance sheet
61.
Which of the following is a liability?
A. machinery
B. accounts payable from goods
C. motor vehicles
D. cash at bank
62. If an expense has been incurred but not yet paid, which of the following statements is correct?
A. Expenses account needs to be credited.
B. Expenses account needs to be debited.
C. The expenses accured account need to be debited.
D. The expenses in advance account needs to be debited.
63. Which of the following are correct?
Accounts
To record
Entry in the account
I. Assets
an increase
a decrease
Debt
Credit
II.Capital
an increase
a decrease
Debit
Credit
III.Liabilities
an increase
a decrease
Credit
Debit
A. I and II only.
B. II and III only.
C. I and III only.
D. I, II and III only.
64. Which of the best describes a balance sheet?
A. An account proving the book balance
B. A record of closing entries
C. A listing of balances
D. A statement of assets.
65. 'Posting' the transactions in the bookkeeping means
A. Making the first entry of a double entry trasaction
B. Entering items in a cash book
C. Making the second entry of a double entry transaction
D. Something other than the above
66. Discounts received are
A. Deducted when we receive cash
B. Given by us when we sell goods on credit
C. Deducted by us when we pay our accounts
D. None of these
67. What is the effect of accrued revenues on the statement of financial position?
A. Increase in current asset
B. Increase in current liability
C. Decrease in current asset
D. Decrease in current liability.
68. When the financial statements are prepared, the Bad Debts Account is closed by a transfer to the
A. Balance Sheet
B. Profit and Loss Account
C. Trading Account
D. Allowance for Doubtful Debts is created
69. The journal is
A. Part of the double entry system
B. A supplement to the Cash Book
C. Not part of the double entry system
D. Used when other journals have been mislaid
70. Errors are corrected via the journal because
A. It saves the bookkeeper's time
B. It saves entering them in the ledger
C. It is much easier to do
D. It provides a good record explaining the double entry records.
71. 14. If the two total of trial balance do not agree, the differences must be entered in
A. The Income Statement
B. A Suspense Account
C. A Nominal Account
D. The Capital Account
72. 15. Transactions are initially recorded in the
A. General Ledger.
B. Balance Sheet
C. General Journal
D. Trial Balance
73. 16. Is it true that the trial balance totals should agree?
A. No, there are sometimes good reasons whey they differ
B. Yes, except where the trial balance is extracted at the year end
C. Yes, always
D. No, because it is not a balance sheet
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