multiple Choice

The properties own by business enterprises are called:

1 point

Assets

Liabilities

Capital

Owner's Equity

The accounts in which the credit sale of merchandise or services are placed is known as

1 point

Notes receivable

Accounts receivable

Amount receivable

Discount receivable

Cash or goods taken away by the proprietor is called

1 point

Drawings

Sales

Charity

Expense

In the trial balance, the balance on the rental expenses account is *

1 point

shown as a debit item

shown as a credit item

sometimes shown as a credit, sometimes as a debit

not shown anywhere in the trial balance

Which of the following is not a personal account?

1 point

Arihant jewellers Ltd.

Maybank Berhad

Tinsukia College

Reserve for discount on creditor's Account

Salary received in advance will be recorded as *

1 point

Accrued revenue

Prepaid revenue

Accrued expenses

Prepaid expenses

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

1 point

Purchases

Merchandise

Goods/Inventory

All of the above

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? *

1 point

Managers

Taxing authorities

Regulatory authorities

All of the above

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

1 point

Identifying

Measuring

Recording

Communicating

Which of the following is a tangible asset? *

1 point

Copyright

Warehouse

Patent

Goodwill

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

1 point

Identification of business transaction

Preparation of business document

Preparation of a trial balance

Observation of business transaction

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

1 point

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

The first step in the accounting cycle is *

1 point

preparing journal entries

posting to ledgers

preparing source documents

preparing the trial balance

Which of the following is not a branch of accounting?

1 point

Financial accounting

Cost accounting

Management accounting

Responsibility accounting

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

1 point

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

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

1 point

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

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

1 point

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

Which of the following statements is false?

1 point

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

The last step in accounting process is:

1 point

Identifying the business transactions and events

Recording the business transactions

Classifying the business transactions

Communication of financial statements

Which of the following statement is correct?

1 point

Book keeping is very old

The work of book-keeping is usually entrusted to junior employees

Function of book-keeping is performed by the book-keeper

All of the above