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kasneb ATD LEVEL I INTRODUCTION TO FINANCIAL ACCOUNTING WEDNESDAY: 2 4 April 2 0 2 4 . Morning Paper. Time Allowed: 2 hours. This paper

kasneb
ATD LEVEL I
INTRODUCTION TO FINANCIAL ACCOUNTING
WEDNESDAY: 24 April 2024. Morning Paper.
Time Allowed: 2 hours.
This paper is made up of fifty (50) Multiple Choice Questions. Answer ALL questions by indicating the letter (A, B, C or D) that represents the correct answer. Each question is allocated two (2) marks. Do NOT write anything on this paper.
When a cheque is dishonored after being deposited into bank it should be credited to
A. Bank Account
B. Cash Account
C. Drawer's Account
D. Dishonoured Account
(2 marks)
Which accounting principle states that revenue should be recognised when it is earned and expenses should be recognised when they are incurred?
A. Accrual principle
B. Cost principle
C. Going concern principle
D. Consistency principle
Webex Ltd., a company dealing with sales of factory machines, sold factory machines and tools in the month of March 2024. The company incurred Sh.50,000 as carriage outwards on the machines. Carriage expenses incurred should be debited to account.
A. Machinery
B. Carriage outwards
C. Purchases
D. Trading
(2 marks)
What does the term "debit" generally refer to in accounting?
A. An increase in assets or expenses
B. A decrease in assets or expenses
C. An increase in liabilities or equity
D. A decrease in liabilities or equity
(2 marks)
What is the main purpose of International Financial Reporting Standards (IFRS)?
A. To create different accounting standards for different countries
B. To provide a single set of global accounting standards for listed companies
C. To help small businesses with their bookkeeping practices
D. To regulate the financial markets internationally
(2 marks)
What does the term "accounting period" refer to in the context of a business?
A. The specific calendar year the business operates in
B. Any chosen period of time used to measure the financial performance of the business
C. The period between the founding of the business and its closure
D. The tax year as defined by the government
(2 marks)
Which of the following is NOT a source document used to record revenue transactions?
A. Invoice
B. Receipt
C. Purchase order
D. Cheques
(2 marks)
AD11 Page 1
Out of 7
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