Accounting Process Study Note

Which of the following is a part of 'Books of Prime Entry'?

• Marketing books

• Subsidiary books

• Human resource books

• Technological books

Which function of accounting involves systematic recording of transactions?

• Systematic Recording

• Cooking

• Painting

• Traveling

What is a transaction in accounting terms?

• A record of goods

• An event involving exchange of money

• A type of asset

• A financial statement.

What is profit in accounting?

• Excess of expense over income

• Excess of revenue income over expense

• A type of asset

• A financial statement.

How can assets be classified?

• Current and Non-Current Assets

• Tangible and Intangible Assets

• Both (a) and (b)

• None of the above.

Which of the following is NOT a criterion for an asset to be classified as a Current Asset?

• It is expected to be realized in the company's normal operating cycle.

• It is held primarily for the purpose of being traded.

• It is due to be realized within 24 months after the reporting date.

• It is cash or cash equivalent unless restricted for at least 12 months.

What is an example of a Non-Current Asset?

• Cash

• Inventory

• Machinery held for long term

• Accounts Receivable

Which of the following is NOT considered a Current Asset?

• Cash

• Debtors

• Machinery

• Closing Stock

What are 'Good Debts'?

• Debts sure to be realized

• Debts that may not be realized

• Debts that cannot be realized

• Debts that are investments

What is a Trade Discount?

• A discount for early payment

• A discount given to the final customer

• A discount allowed by the wholesaler to the retailer

• A discount recorded in the books