Accounting is the process of the 

i. gathering and recording information 

ii. raising funds for a business 

iii. providing information that influences decisions 

• 1. I and II only 

• 1. I and III only 

• 1. II and III only 

• 1. I, II, and III 

Which of the following groups of persons may be LEAST interested in using accounting information to determine how well businesses are managed?

• 1. Owners 

• 1. Investors 

• 1. Employees 

• 1. Customers

Which of the following states the correct order of the stages in the accounting cycle, before Final Accounts?

• 1. Posting to the ledger, journalizing, trial balance 

• 1. Posting to the ledger, trial balance, journalizing 

• 1. Journalizing, trial balance, posting to the ledger 

• 1. Journalizing, posting to the ledger, trial balance

A balance sheet serves the purpose of

• 1. showing the values of assets, liabilities and capital.

• 1. calculating the profits and losses made.

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  3. showing the value of the closing stock in hand.

• 3. determining the available cash balance.

Which of the following are examples of Current Liabilities?

i. Mortgages 

ii. Accounts Payable 

iii. Accrued Wages

• I and II only

  
  

• I and III only 

• II and III only 

• I, II and III 

 Which of the following accounts is made up of real accounts ONLY?

• 1. Plant, machinery, inventory, account receivables 

• 1. Equipment, furniture, vehicles, plant 

• 1. Vehicle, capital, building, prepayments 

• 1. Cash, inventory, building, account receivables

Which of the following lists of current assets is arranged in order of liquidity from least to most liquid?

• 1. Accounts receivable, prepayments, inventory, cash, bank 

• 1. Prepayments, accounts receivables, cash, bank, inventory 

• 1. Cash, bank, prepayments, accounts receivables, inventory 

• 1. Inventory, accounts receivables, prepayments, bank, cash

The Cash Book is BEST used for record

• 1. goods sold for cash 

• 1. goods returned for cash 

  2.  

• 1. goods purchased for cash 

• 1. cash receipts and cash payments

A Portap bought goods for $500 on credit. In which book of prime entry will this be recorded?

• 1. Purchases Journal 

• 1. Sales Journal 

• 1. General Journal 

• 1. Cash Book

A businessman offers a discount for prompt payment for goods purchased. Under which column in his Three-Column Cash Book would this be entered?

• 1. Bank 

• 1. Cash 

• 1. Discount allowed 

• 1. Discount received