Accounting Test_Offline 23-24

1. If beginning capital was $25,000, ending capital is $37,000, and the owner's withdwere $23,000, the amount of net income or net loss for the period was:

• Net loss of $14,000
• Net income of $35,000
• Net loss of $35,000
• Net income of $14,000

2. ________________ is prepared at the end of the accounting period to show the final position of a business.

• Balance sheet
• Profit and loss statement
• Statement of financial position
• Profit and loss account

3. Accounts receivable normally has ________ balance

• Negative
• Positive
• Credit
• Debit

4. Journal is a book of ______entry

• Original
• Secondary
• None of these
• First

5. Nominal accounts are related to

• Debtors and creditors
• Expenses and loses
• Assets and liabilities
• None of these

6. Real accounts are related to

• None of these
• Assets and liabilities
• Debtors and creditors
• Expenses and losses

7. One of the detailed rules used to record business transaction is

• Objectivity
• Accruals
• Double entry book keeping
• Going concern

8. A business record should never be mixed with owners's personal records. Identify the principle:

• Materiality Principle
• Business Entity
• Dual Concept
• Objective Evidence

9. The value of money is considered to have static value as the transaction are recorthe value on the transaction date- The following statement is limitation of which principle?

• Dual Aspect
• Money Measurement
• Business Entity
• Prudence

10. Which principle refers to relative importance of an item or an event?

• Conservatism
• Money Measurement
• Materiality
• Personal Account