Question 1

What is the purpose of taking off a trial balance?

Question 1 options:

a)It shows the accountant where a mistake has been made in the accounting process.

b)It is done when there is no time for an Actual Balance Sheet

c)It is a means of listing the accounts with the largest balances.

d)It is a way to check the accuracy of a ledger.

Question 2

What is another term for net income?

Question 2 options:

a)Net profit

b)Net surplus

c)Net loss

d)Net worth

Question 3

Which of the following questions is not answered by the income statement?

Question 3 options:

a)How much money was spent on advertising?

b)How much money did the firm make in its first month?

c)How much do clients owe the company?

d)How much money was spent on wages?

Question 4

A company bought equipment and paid a part of the cost in cash,

Which scenario is correct?

Question 4 options:

a)Asset debit, Asset debit, Liability debit.

b)Asset credit, Asset debit, Liability debit.

c)Asset debit, Asset credit, Revenue credit.

d)Asset credit, Asset debit, Liability credit.

Question 5

Which of the following is not considered to be a revenue account?

Question 5 options:

a)Rental revenue

b)Royalties

c)Fees earned

d)Drawings

Question 6

What is the best meaning for a chart of accounts?

Question 6 options:

a)a chart demonstrating the net income or net loss of the company.

b)a list of the ledger accounts and their numbers arranged in ledger order.

c)a chart showing the accounts affected by financial transactions.

d)a table resembling the equation analysis sheet.

Question 7

Which of the following statements is incorrect?

Question 7 options:

a)Revenues - expenses = net income, if expenses are greater than the revenues.

b)Revenues = increase in equity.

c)Drawings = decrease in equity.

d)Expenses = decrease in equity.

Question 8

Which of the following is not a date for the heading of an Income Statement?

Question 8 options:

a)on December 31^st2015.

b)for the month ending December 31^st2015.

c)for the year ending December 31^st2015.

d)for the period ending March 31^st2015.

Question 9

Which of the following statements about the journal is incorrect?

Question 9 options:

a)It provides a chronological record of business transactions.

b)It presents the financial position of the business.

c)It is the book of original entry.

d)It can be used as a reference to verify information in the ledger.

Question 10(1 point)

When an item is subject to HST, what must the seller do when recording the sale?

Question 10 options:

a)the seller need not record the tax separately.

b)debit HST Payable

c)debit HST Recoverable.

d)credit HST Payable.