Question 1

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Assets are economic resources of a business expected to be of benefit in the future.

Select one:

True

False

Question 2

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A transaction always involves exactly two accounts.

Select one:

True

False

Question 3

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Unearned revenue recorded initially as revenue is adjusted by debiting a liability account.

Select one:

True

False

Question 4

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Payments for advertising, equipment repairs, utilities, and rent are liabilities.

Select one:

True

False

Question 5

Not yet answered

Generally Accepted Accounting Principle is general law or rule followed in the preparation of financial statements.

Select one:

True

False

Question 6

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Since the life of the business is assumed to be indefinite, the financial statement of the business should be prepare only when it goes into liquidation.

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True

False

Question 7

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According to money measurement concept, the efficiency of the top management of the business must be clearly recorded in the books of accounts

Select one:

True

False

Question 8

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In accountancy, all business transactions are recorded as having dual aspect.

Select one:

True

False

Question 9

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Signing an contract with a vendor that designates the price of a product and a minimum purchase level is considered a recordable transaction.

Select one:

True

False

Question 10

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Accounting periods should be of equal length to facilitate comparisons between periods.

Select one:

True

False