SAC_CLT1_MCQ_Test1_Nov2023_EJC

Which one of the following is an

example of a source document in

accounting?

• Ledger.

• Journal.

• Cash book.

• Employee time card.

In accounting double entry, debits

• increase

  both assets and liabilities.

• increase

  both assets and liabilities.

• increase assets and decrease liabilities.

• decrease assets and increase liabilities.

Which one of the following financial statements is not normally used by top management for decision-making?

• Cash

  Flow statement.

• Trial Balance statement.

• Statement of Financial Position.

• Statement of Comprehensive Income.

Lim San Company provided stevedoring services to Sembawang Port in November but will only be paid in mid-December. Lim San’s accounts executive incorrectly recorded the transaction in the journal on 30 November as follows:

30 Nov Dr Stevedoring Services $10,000

Cr Accounts Payable $10,000

As the Accounts Supervisor, advise the correct journal entry.

• Debit

  Cash and Credit Accounts Payable.

• Debit Cash and Credit Accounts

  Receivable.

• Debit Accounts Payable and Credit

  Stevedoring Services Revenue.

• Debit Accounts Receivable and Credit

  Stevedoring Services Revenue.

What effect will providing ship agency services on account have on the components of the accounting equation?

• Increase

  assets and increase capital.

• Increase

  assets and decrease capital.

• Increase

  liabilities and increase capital.

• Decrease

  liabilities and decrease assets.

Which equation is incorrect?

• Assets = Capital + Liabilities

• Assets - Capital = Liabilities

• Assets - Liabilities = Capital

• Assets = Capital - Liabilities

Straight line method of depreciation uses

• percentage of original cost of fixed asset.

• original cost less residual value of current asset.

• original cost less residual value divided by lifespan of fixed asset

• original cost less residual value divided by lifespan of current asset

Trade discounts are deducted from

• invoice price.

• nett price.

• list price.

• discount price.

Which statement is correct?

• Revenue increases are recorded as debits.

• Revenue increases are recorded as credits.

• Expense increases are recorded as credits.

• Drawings are recorded as credits

Which statement is correct?

• Journal is the 1st book of accounting entry.

• Journal is the 2nd book of accounting entry.

• Ledger is the 1st book of accounting entry.

• Ledger is the 3rd book of accounting entry.