multiple choice

5: Which of the following is not a personal account?

Arihant jewellers Ltd.

Maybank Berhad

Tinsukia College

Reserve for discount on creditor's Account

6 :Salary received in advance will be recorded as *

Accrued revenue

Prepaid revenue

Accrued expenses

Prepaid expenses

7: The goods which are purchased for the purpose of resale are called

Purchases

Merchandise

Goods/Inventory

All of the above

8 : The end last stage in the accounting cycle is to produce accounting information (financial statements). Which of the following groups rely on accounting information for decision making? *

Managers

Taxing authorities

Regulatory authorities

All of the above

9 :Bookkeeping is primarily involved in _________ part of the accounting process *

Identifying

Measuring

Recording

Communicating

10 : Which of the following is a tangible asset? *

Copyright

Warehouse

Patent

Goodwill

11 : Which of the following is NOT the stage in the accounting cycle? *

Identification of business transaction

Preparation of business document

Preparation of a trial balance

Observation of business transaction

12 : Which of the following statements is INCORRECT about the users of accounting information? *

Regulators are considered as internal user

Business owner is an internal user

Manager used the accounting for decision making

Tax authorities used accounting information to change taxation

13: The first step in the accounting cycle is *

preparing journal entries

posting to ledgers

preparing source documents

preparing the trial balance

14 : Which of the following is not a branch of accounting?

Financial accounting

Cost accounting

Management accounting

Responsibility accounting

15 : In a double-entry system, a debit is used to record : *

an increase in asset and revenue ; a decrease in liability, expenses and capital

a decrease in asset and capital ; a decrease in liability and revenues

a decrease in asset, an increase in capital, liability and revenue

an increase in asset, expenses and drawing ; a decrease in capital, liability and revenue

16 : Which of the following is an important reason for studying accounting?

The information provided by accounting is useful in making many economic decisions

Accounting plays an important role in society

The study of accounting could lead to challenging career

All of the above

17 : Rizalman Holdings bought a lorry on credit from Edaran Sdn bhd. The effects of this transaction are: *

Increase in both asset and capital

Decrease in both asset and liability

Increase in both asset and liability

Increase in asset and decrease in liability

18 :Which of the following statements is false?

Accounting is the language of business

Accounting is as old as money itself

Accounting is a service function

Accounting involves only the recording of business transactions