Basic Accounting

Business is distinct from owner. This concept is called

• Separate entity

• Going concern

• cost

• money measurement

Accounting is

• a science

• an art

• both art and science

• none of the above

Accounting refers to

• selling and buying transaction

• counting the cash

• recording business transaction in terms of money

• getting and giving credit

Every business transaction has

• one aspect

• two aspect

• three aspect

• four aspect

The business entity concept can be applied to

• sole proprietor

• partnership farm

• company

• all the above

Accounting does not record non financial transaction

• entity concept

• dual aspect concept

• money measurement concept

• cost concept

Prepaid commission is ......

• as asset

• a liability

• a loss

• none

Insurance paid in advance by a business unit is ............

• a liability

• an asset

• a loss

• none

Excess of sales over cost of goods sold is ............

• Gross Profit
• Cost of Goods Sold
• Operating Profit
• Net Profit

A lease is an example of ..................

• rental agreement
• purchase order
• employment contract
• current asset