Question 1 A user who uses accounting information to evaluate the risks of granting loan to the business Not yet answered Marked out of 0.50 P Flag question O a. Investor O b. Regulatory agency Oc. Employee Od. Creditor Question 2 Which of the following users of accounting verifies accounting information to check the Tax compliance by the companies? Not yet answered Marked out of 0.50 Flag question O a Creditors O b. Tax authority Oc Management O d. Regulatory agencies Question 3 Which among the following user of accounting information uses accounting information to verify if the company is operating within the prescribed rules or not? Not yet answered Marked out of 0.50 Flag question O a Management O b. Tax Authorities Oc. Regulatory agency O d. Labor union Question 4 A summarized statement of transactions relating to a particular person, item expense or Not yet answered income. Marked out of 0.50 Flag question O a invoice O b. accounts Ocvoucher O d. chart of accounts Question 5 Assets that can easily be converted to cash and cash equivalents and can be used within a business operating cycle or within one year. Not yet answered Marked out of 0.50 P Flag question O a. Current asset O b. Revenue OC. Non-current asset O d. Liability Question 6 Not yet Which among the following are the resources owned and acquired by the business to be used for future economic benefits. answered Marked out of 0.50 P Flag question O a. Revenue O b. Liability Oc. Expense O d. Asset Question 7 Not yet answered It represents the cash or other assets withdrawn from the business by the owner for the personal use. Marked out of 0.50 P Flag question O a. Equity O b. Drawings O c. Dividends O d. Retained earnings The liability that is due after more than one year is called as Question 8 Not yet answered Marked out of 0.50 P Flag question O a. Current liability O b. Non-current asset Oc. Long-term liability O d. Revenue Question 9 It is the amount earned by the business on the process of selling goods or performing services. Not yet answered Marked out of 0.50 P Flag question O a. Revenue O b. Expense O c. Asset O d. Liability Question 10 When liability, capital, and revenue accounts increase, there will be a Not yet answered Marked out of 0.50 P Flag question O a. Credit O b. debit OcNeither Debit nor credit O d. debit and credit. Question 11 To record date-wise details of transactions expressed as debits and credits to accounts, the business prepares Not yet answered Marked out of 0.50 P Flag question O a trial balance. Ob. journal. O c. balance sheet. O d. ledger. Question 12 Who among the following uses accounting information to know the possible wage increments? Not yet answered Marked out of 0.50 P Flag question O a. Customers O b. Employees Oc. Owners O d. Bankers Question 13 Which of the following facilitates the comparison of financial performance with one period to another period is possible ? Not yet answered Marked out of 0.50 Flag question O a. Going concern Assumption O b. Consistency Principle OC Matching Concept O d. Historical cost concept Question 14 The assets that can be easily converted into cash within a short period of time that is one year or less are known: Not yet answered Marked out of 0.50 Flag question O a Fixed asset O b. Current assets O c. Intangible assets Od. Investments Question 15 Which among the following is considered as the book of original entry? Not yet answered Marked out of 0.50 P Flag question O a Ledger O b. Trial Balance Oc Journal O d. Balance Sheet Question 16 Which of the following branches of accounting is the original form of accounting? Not yet answered Marked out of 0.50 O a. Taxation accounting O b. Financial accounting Cost accounting Od Management accounting . Flag question Question 17 A business borrows loan from the bank. The entry to record is cash account is debited and Not yet answered Marked out of 0.50 O a. Account payable is credited O b. Equity is credited Oc Cash is credited O d. Expense is debited P Flag question Question 18 Accounts receivable is classified as an Not yet answered Marked out of 0.50 O a. A Capital O b. An Asset OC A Expense. O d. A Liability P Flag question Question 19 Not yet Ali, the owner of the business purchased Furniture for RO 10,000 to be used in the business. The manager estimates the value of the Furniture to be RO 11,000 in the market. If the Business follows Historical Cost concept, the amount to be recorded for Furniture is answered Marked out of 0.50 P Flag question O a. RO 21,000 O b. RO 1000 Oc RO 11,000 O d. RO 10,000 Question 20 Which of the following transactions would decrease the cash by RO 5000 and decrease liability 5000? Not yet answered Marked out of 0.50 P Flag question O a. the business repaid the loan of RO 5000 which was borrowed in the last month O b. The business gave loan of RO 5000 Oc. the business sold goods to the customer worth RO 5000 and the customer promised to pay later O d. The business borrowed loan of RO 5000 Question 21 Which of the following transactions would decrease asset by RO 2000 and increase expense by RO 2000 Not yet answered Marked out of 0.50 P Flag question O a. The business borrowed loan of RO 2000 O b. The business Purchased computer RO 2000 to be used in the business. Oc. The business paid the utilities expense RO 2000 O d. The business sold the goods and received cash RO 2000 Question 22 The effect of payment made to creditors of the business would be Not yet answered Marked out of 0.50 O a. Increase an asset and decrease other asset O b. Decrease an asset and decrease owners equity Oc. Increase an asset and increase a liability O d. Decrease an asset and decrease liability p Flag question Question 23 There is a decrease in equity and decrease in asset in the business. Which transaction might have occurred? Not yet answered Marked out of 0.50 P Flag question O a. The owner purchased car to be used in the business O b. The owner withdrew cash from the business to buy a gift to his friend O c The Owner received a gift from his friend O d. The Owner paid the monthly salaried to the employees. Question 24 Which of the following accounts are under owners equity? Not yet answered Marked out of 0.50 O a. Retained Earnings O b. Cash Oc Prepaid expense O d. Unearned revenue Flag question Question 25 Owner's equity can be increased through Not yet answered Marked out of 0.50 O a. expenses exceeding revenues O b. investments by the owner O c. withdrawals by the owner O d. purchase of assets by cash Flag question Question 26 Not yet answered Which transaction is correct for the given below journal entry? Dr. Advertisement expenses, Cr Cash. Marked out of 0.50 Flag question O a. Paid salary to the employees O b. The business gave an advertisement in the Website O c. Received cash for the advertisement O d. Advertisement expenses were paid Question 27 Not yet answered The business incurs some expense as a part of activity. Which of the following is an example of Expense? Marked out of 0.50 P Flag question O a. prepaid insurance, O b. cash. Oc accounts payable. O d. Salary paid Question 28 Not yet The journal entry Debit telephone bill, credit Accounts payable is correct for which of the following transactions? answered Marked out of 0.50 P Flag question O a. The business paid the telephone bill for the current month O b. The business received the telephone bill O c. The business sent the telephone bill to the customer. O d. The business received the telephone bill and it will be paid later