REVISION

The following defines “recording” of financial information, EXCEPT

• A. Transferring accounting data from ledger to trial balance.

• B. Analyzing results of financial statements.

• C. Sorting of business transactions into appropriate and correct journals.

• D. Moving of business transaction entry from journal to general ledger.

Which of the followings is characteristic of a sole proprietorship?

.

• A. Owner has unlimited legal liability

• B. Profit belongs to the shareholders.

• C. Has legal obligation to keep the the books and prepare accounts

• D. None of the above.

Following are the internal users of the accounting information, EXCEPT

i. Manager

ii. Employee

iii. Director

iv. Government

• A. i and ii

• B. ii and iii

• C. iii and iv

• D. iv

The accounting cycle includes the following, EXCEPT

• A. produce ledger accounts

• B. construct a trial balance

• C. analysis of owner’s profile

• D. preparations of adjusting entries

Financial information should be presented in a manner that is easily understandable, is

to comply to ______ characteristic.

• A. Comparability

• B. Verifiability

• C. Understandability

• D. Consistency

When there is no physical stock take carried out to prove that the carrying amount of

inventories is correct, this would violate ______ characteristic.

• A. Verifiability

• B. Timeliness

• C. Understandability

• D. Comparability

According to ______ concept, assets are recorded at their original price.

• A. Businesss entity

• B. Historical cost

• C. Money measurement

• D. Periodicity

For accounting purposes, a business must record its transactions in the monetary units

rather than in the physical units. This practice is in line with ______ concept.

• A. Economy entity

• B. Historical cost

• C. Going concern

• D. Money measurement

Which of the following describes the term ‘current liability’?

• A. Amounts owed by a business to external parties.

• B. Amounts owed by a business that are repaid within one year.

• C. Amounts owed by the business that are not to be paid within one year.

• D. Economic resources owned and controlled by a business

Ledger entry for purchase of motor van from MZ Motor by cheque is _____________.

• A. debit purchases, credit bank

• B. debit motor vehicles, credit bank

• C. debit purchases, credit MZ Motor

• D. debit motor vehicles, credit MZ Motor