Accounts as a systems

For the first 3 years Dyasha Designs calculated the straight line method of deprecation in its fixed assets. In year 4, the business decided to calculate depreciation using the reducing balance method. The accounting concept that is being violated is

• Accrual

• Prudence

• Matching

• Consistency

Using the permanency method, the descending order in which current assets should be shown in a balance sheet is

• cash, bank, accounts receivable, inventory

• inventory, accounts receivable, bank, cash

• inventory, bank, cash, accounts receivable

• accounts receivable, inventory, bank, cash

Mr X bought a motor van for personal use but has recorded the information in the books of his business. Which accounting concept did Mr X breach?

• Going concern

• Business entity

• Money measurement

• Historical cost concept

If the following lists of assets found on the Balance

Sheet of a retail trader were to be arranged in order

of liquidity; the sequence would be

• Motor Van, building, bank, fixtures, cash, debtors

• Cash, fixtures, debtors, bank, building, motor van

• Cash, bank, fixtures, debtors, motor van, building

• Cash, Bank, debtors, fixtures, motor van, building

Which of the following states the correct order of the

stages in the accounting cycle?

• Journalizing, Posting to the ledger, Trial Balance,

  Final Accounts

• Journalizing, Trial balance, Posting to the ledger,

  Final Accounts

• Posting to the ledger, Journalizing, Trial Balance,

  Final Accounts

• Posting to the ledger, Trial Balance Journalizing,

  Final Accounts

Which of the following groups would be regarded as

examples of current assets?

• Vehicles, equipment, machinery, typewriter

• Debtors, stocks, creditors, cash at bank

• Bank overdraft, machinery, debtors, stock

• Stock, cash at bank, debtors, cash in hand

The accounting cycle entails the following

procedures:

I. Posting to the ledger

II. Making adjusting and closings entries

III. Journalizing

IV. Preparation of final accounts

V. Extracting a trail balance

• III, I, II, V, IV

• III, I, V, II, IV

• I, III, V, II, IV

• III, I, V, IV, II

Which of the following expresses the balance sheet

equation?

• Capital = Assets + Liabilities

• Assets = liabilities – Capital

• Liabilities = Assets + Capital

• Liabilities = Assets – Capital

A statement that gives the financial position of a

business at a specific date is a

• Trial balance

• Balance Sheet

• Trading Account

• Working Paper

Which of the following assets is the MOST liquid?

• Cash

• Debtors

• Equipment

• Stock