Principles of Accounting (Quiz 1)

Which of the following is NOT characteristics of company?

• LImited liability

• Need huge capital

• SIngle taxation

• Unlimited life

Which of the following is NOT categorized as Financial Statement?

• Balance Sheet

• Trading Account

• Trial Balance

• Income Statement

Who are categories as internal user of financial statement?

• Shareholder

• Customer

• Banker

• Government

Which of the following is NOT the purposes of accounting information?

• To know the financial status of the organization.

• To find out the opportunity of the business.

• Easier reference to user.

• To avoid misleading financial statements.

The activities which involve in both bookkeeping and accounting process are:

• Classifying and recording.

• Recording and analyzing.

• Summarizing and interpreting.

• Analyzing and interpreting.

The business owner paid his son's tuition fee and the amount paid is not considered a business transaction. Which of the following concept is being applied?

• Separate legal entity concept

• Historical cost concept

• Duality concept

• Consistency concept

Business activities can be divided into specific period such as a month, six months or a year. Which of the following accounting assumption applied?

• Consistency

• Going concern

• Materiality

• Accounting period

Which of the following it is assumed that a business will continue to expand and operate in the future refer to______________.

• Consistency.

• Going concern.

• Accounting period.

• Duality.

An accounting cycle starts with _________________.

• Ledger

• Trial Balance

• Source of documents

• Balance Sheet

Which of the following accounting equation is TRUE?

• Assets + Liabilities = Owner's Equity

• Owner's Equity - Liabilities = Assets

• Assets + Owner's Equity = Liabilities

• Assets - Liabilites = Owner's Equity