principels of acount

Which of the following financial statements shows the value of a business' assets?

• Balance sheet

• Trading Account

• Cash flow statement

• Profit and loss account

The main internal users of accounting information are

• managers

• competitors

• local communities

• government agencies

Which of the following features are benefits of using accounting software?
I: Integrated analysis of information
II: Almost immediate updating of records
III: Programmable to recognize irregular entries

• I and II Only

• I and III Only

• II and III Only

• I, II and III

Which of the following lists of activities shows the correct order of the stages in the accounting cycle, before final accounts?

• Posting to the ledger, journalizing, trial balance

• Posting to ledger, trial balance, journalizing

• Journalizing, posting to ledger, trial balance

• Journalizing, trial balance, posting to the ledger

The following information refers to the assets and liabilities of Mr. Jones. From the information, Mr Jones' capital amount is

• 405

• 450

• 850

• 975

Partnerships are formed for the purpose of:

I: Combining capital from different persons
II: Benefiting from different skills and specilizations
III: Sharing ideas, experience and responsibiltiies

• I and II only

• I and III Only

• II and III Only

• I, II and III

Which of the following is usually used to complete a general journal entry?

• Narration

• Description of assets

• Description of liabilities

• Name of book to which entry must be posted

Item 8 refers to the following balances at the endof a financial period.
Motor vehicles: $2000

Payables: $3000
Receivables: $2000
Capital: $11,000

Building: $10,000
What is the total amount for the assets?

• $14,000

• $12,000

• $15,000

• $13,000

Ram Singh purchased goods valued at $500 on credit. He paid off his bill within the grace period and so received a 10% cash discount. How much did he pay for the goods?

• 50

• 450

• 490

• 550

Which of the following items are examples of current liabilities?

I. Mortgages

II. Accounts payable
III. Accrucd Wages

• I and II only

• I and III only

• II and III Only

• I, II and III