ACC1314 FE MCQ Revision

Which of the following is an asset?

• Bank loan

• Revenue

• Capital

• Furniture

In bookkeeping, the left side of a T-account is called:

• Credit

• Balance

• Header

• Debit

Which of the followings is the user of accounting information?

• Management

• Investors

• Government

• All of the above

A business transaction is recorded in the books only if it:

• Involves cash

• Can be expressed in monetary terms

• Is an expense

• Occurs on credit

Which document is used to reconcile the bank account?

• Sales invoice

• Petty cash book

• Bank statement

• Purchase order

The right side of a T-account is known as the:

• Debit side

• Credit side

• Balance side

• Header

In which book is the first record of a transaction made?

• Cash Book

• General Ledger

• Income Statement

• Journal

What is the purpose of the Statement of Financial Position?

• To show revenue and expenses

• To show assets, liabilities, and equity

• To record daily transactions

• To show cash inflows and outflows

Capital introduced by the owner in a business is classified as:

• Asset

• Liability

• Revenue

• Equity

The accounting equation is best represented by:

• Assets = Liabilities - Capital

• Assets = Liabilities + Capital

• Capital = Assets - Liabilities

• Assets = Revenue - Expenses