Test 1 Set 2 May 2023

Partnership needs to pay corporate tax.

• True

• False

A credit entry could lead to ________.

• An increase in assets or decrease in expenses

• An increase in revenues or an increase in liabilities

• A decrease in revenues or decrease in assets

• A decrease in liabilities or an increase in expenses

According to ________ concept, business transactions should be measured in monetary value.

• Business entity

• Historical cost

• Going concern

• Money Measurement

In accounting, the term summarizing refers to ________.

• The transfer of information from ledger to trial balance

• The transfer of entries from journal to ledger

• The preparation of financial statement from trial balance

• The preparation of trial balance and financial statements

Once a method was adopted, business needs to follow that method consistently so that the financial statements are comparable.

• True

• False

Relevant information can influence the decision making of users of financial information.

• True

• False

Posting to ledger refer to the process of recording transactions from source document into book of prime entries.

• True

• False

Business entity concept requires payment of transportation cost for business and personal purposes be recorded as expenses.

• True

• False

Customers are external users while suppliers are internal users of accounting information.

• True

• False

Journal entries for payment of liabilities through online banking are debit account receivable account, credit bank account.

• True

• False