Introduction to Accounting

The liability arising from the purchase of goods or services on credit is called:

• Creditors

• Account Payables

• Debts

• Loan

The financial information provided by an accounting system is needed by:

• Creditors

• Owners

• Management

• All of the above

A percentage reduction from the list price of merchandise allowed to retailers by whole sellers is called:

• Commission

• Trade discount

• Allowance

• Cash discount

The assets that are used in the operation of the business but have no physical existence are usually known as:

• Tangible assets

• Intangible assets

• Liquid assets

• Non-current assets

Double entry system of accounting means:

• Entry in 2 sets of book

• Entry on 2 dates

• Entry for 2 aspects of the transaction

• Entry for 1 aspect of the transaction

The activities of selecting, processing and reporting the information can be described as:

• Bookkeeping

• Auditing

• Costing

• Accounting

The complete process of accounting is called:

• Accounting cycle

• Posting

• Business cycle

• Journalizing

Withdrawal of merchandise for personal use is classified as:

• Sale of merchandise

• Personal expense

• Drawings

• None of the above

The science and art of correctly recording business dealings in a set of books is called:

• Accounting

• Bookkeeping

• Double entry bookkeeping

• Record keeping

A portion of the accounts receivable that proves to be uncollectible is termed:

• Doubtful debts

• Provisions

• Bad debts

• None of the above