Account SS 1

Accounting equation states that

• Assets equals liabilities plus creditors

• Assets equals capital plus liabilities

• liabilities plus assets equals capital

• capital plus assets equal liabilities

A career for accounting students does not include

• Banking

• Accounting

• Teaching

• Public relation

Record keeping is relevant to organization because

• shows the existence of the business

• enable easy access to loans

• helps to prevent fraud

• direct tax authorities to appropriate organization

The process of transferring transaction to ledger is

• transfer

• extracting

• listing

• posting

A person who classifies and keeps record of a business transaction is

• Accountant

• Bookkeeper

• Manager

• Clerk

An act of recording,classifying,summarizing, analyzing,interpreting and communicating financial transaction

• Bookkeeping

• Recording

• Marketing

• Accounting

Users of accounting information includes

• students

• Politicians

• investors

• doctors

Bookkeeping is a/an .................. Part of accounting

• integral

• formative

• practical

• broader

Sales day book is used to record

• cash sales

• cash and credit sales

• Credit sales

• all of the above

principles of double entry states that

• Every giver must have a receiver

• for every debit entry,there must be a corresponding credit entry

• every assets must be debited while liabilities are credited

• every accounting transaction must have a dual effect