Chapter 2 Accounting Information System

Payment was done immediately at the point of purchase.

• Cash transaction
• Credit transaction

Payment was made to supplier at a later date.

• Cash transaction
• Credit transaction

Which accounting concept is used when owner makes drawings?

• Accounting Period Concept
• Monetary Concept
• Accounting Entity Concept
• Objectivity Concept

Which accounting concept states that all business activities have monetary values?

• Accounting Period Concept
• Monetary Concept
• Accounting Entity Concept
• Objectivity Concept

Which accounting concept is used for source documents?

• Accounting Period Concept
• Monetary Concept
• Accounting Entity Concept
• Objectivity Concept

Which accounting concept is used for recording the cost of the business transactions?

• Historical Cost Concept
• Monetary Concept
• Accounting Entity Concept
• Objectivity Concept

Which accounting concept state that business has indefinite economic life?

• Historical Cost Concept
• Going Concern Concept
• Accounting Entity Concept
• Accounting Period Concept

Which accounting concept state that business is divided into regular intervals?

• Historical Cost Concept
• Going Concern Concept
• Accounting Entity Concept
• Accounting Period Concept

1) Reporting
2) Closing
3) Adjusting
4) Identifying and recording
Arrange the accounting cycle

• 4,2,3,1
• 4,1,2,3
• 3,2,4,1
• 4,3,1,2

Which one of the following is not a source document?

• Invoice
• Receipt
• Cheque
• Bank Statement