Accounting marathon part 2

Some of the benefits of implementing accounting software in businesses are? ( can be one or more than one)

• increases efficiency in the accounting process

• Makes it easier to spot errors and irregularities

• facilitates easier and secure access and distribution of information

• Requires extensive training of users and regular updating of software.

The double entry system of accounting is BEST described a a system where

• Special books called journals are used to record transactions

• Accounts must have two sides

• Each transactions must be recorded with at least one debit entry and one credit entry.

• There are specific books for specific types of transactions

Abe Eecie deposited a cheque for $500 received from Ms. Tia Marie. Which of the following entries are required to correctly record this transaction?

• Dr. bank

• Cr. Abe Eecie

• Cr. Ms. Tia Marie

• Dr. Cash

A chef starts a catering business with $25000 worth of cooking equipment. what are the correct entries to record this?

• Dr. Capital a/c and Cr. Equipment a/c

• Dr. Bank and Cr. Capital a/c

• Dr. Equipment a/c and Cr. Cash a/c

• Dr. Equipment a/c and Cr. Capital a/c

a business owner inherits a building which he decides he will use as his new business office. Which of the following entries should be used to record the introduction of this asset into the business by the owner?

• Dr. Capital a/c and Cr. Building a/c

• Dr. Building a/c and Cr. Loan from owner a/c

• Dr. Building and Cr. Accounts payable a/c

• Dr. Building a/c and Cr. Capital a/c

In the accounting records of I. khani-Singh there is a debt to the drawings account with a corresponding credit to the purchase account.

• The credit purchase of stock

• the credit purchase of stock from the owner

• The withdrawal of stock for the owner's personal use

• This is an error, purchases should never be credited

Hyreen Trooms rent rooms to travellers. She received $10,000 in cash in respect of rent revenue an deposited it into her business' bank account. What is the correct double entry to record this?

• Dr. Bank $10,00 and Cr. Cash $10,000

• Dr. Bank $10,000 and Cr. Rent Expense $10,000

• Dr. Rent Revenue $10,000 and Cr. Bank $10,000

• Dr. Bank $10,000 and Cr. Rent Revenue $10,000

The withdrawl of any resource, cash or otherwise, from a business by the owner for his or her own personal use has what effect on CAPITAL:

• No effect on capital

• Increase capital

• decrease capital

• None of the above

The major purpose of a balance sheet or statement of financial position to show:

• The profit made by an entity for a given financial period

• The changes in the capital structure of an entity and how they are financed at a given point in time

• The resources of an entity and how they are financed at a given point in time.

• The sources and uses of cash of an entity for a given financial period.

Premises would be classified on the statement of financial position ( balance sheet ) as a

• CURRENT ASSETS

• NON- CURRENT (FIXED) ASSETS

• CURRENT LIABILITY

• NON- CURRENT LIABILITY