REVIEW 3 Accounting Quiz

Which of the following is put down in accounting records?

• Total of employees

• Sales received

• Total of outputs

• Number of departments

Double-entry book-keeping means that all transactions are recorded in two notebooks.

• TRUE

• FALSE

All accounts receivable of the company are only recorded in a book called a___________.

• nominal ledger

• sales ledger

• bought ledger

• cash book

The process of converting an asset into an expense is known as __________.

• taxation

• liability

• depreciation

• share issuing

A ___________ is an amount entered on the left-hand side of an account, recording money paid out.

• book-keeper

• debit

• credit

• stock

In a _______________, the total debit should be equal to the total credit.

• income statement

• retained earning statement

• cash flow statement

• trial balance sheet

We have some information to prepare the balance sheet : - Common stock: $800; Account receivable : $1,500; Bonds : $4,500; Inventories : $2,500 What is the value of the Building asset?

• ($300)

• $ 1,300

• $300

• ($1,300)

According to _______, an enterprise is an accounting unit separate from its owners, creditors, etc.

• accounting period assumption

• continuity assumption

• accounting entity assumption

• realization principle

According to __________ , all transactions must be recorded in a single, stable currency, especially in the financial statement of multi-national companies.

• matching principle

• consistency principle

• going-concern assumption

• unit-of-measure assumption

Under the ________, the value of assets in a balance sheet is based on the price that was paid for it.

• objectivity principle

• matching principle

• historical cost principle

• going – concern assumption