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WorksheetsUnit -37
Total questions: 15
Worksheet time: 7mins
Cash accounting system is suitable for
a. Small or new businesses
b. Big businesses
c. Limited companies
d. Government organizations
The method of accounting that recognizes revenue when money is received and expenses when bills are paid is called:
a Managerial Accounting
b Accrual Basis
c Forensic Accounting
d Cash Basis
Provide descriptions for this transactions:
ABC Company Ltd. pays electricity SR 2000 of electricity expense.
a Increase in cash and decrease in electricity expense
b Increase in electricity expense and decrease in cash
c Decrease in expense and decrease in cash
None of the above
. Every transaction will affect how many accounts?
a. Only One
b. Only Two
c.Two Or More
d. four
Petty Cash transactions must always be recorded with:
a. A Receipt
b. Manager
c. Memorandum
d. CEO of the company
. Which of the following factors should be considered for purchasing a new accounting software?
a. Name of the company
b. Company details
c. Cost
d. date of purchase
Which of the following should be considered in setting up a cash accounting system
Chart of
accounts
Preparation of
forms
Organizational
procedures
All of the above
4 Under the accrual basis of accounting, expenses are reported in the accounting period when the
a Cash Is Paid
b Expense Matches The Revenues Or Is Used Up
c when payment is made
d when the expenses are due
A check returned by bank marked "NSF" means that
A) Bank can't verify your identity
B) There are not sufficient funds in your account
C) Check has been forged
D) Check can't be cashed being illegal
When is revenue recorded in the cash basis accounting method?
a When the work is complete
b When payment is received
c When an invoice is sent to the customer
d When the work is begun
Under the accrual basis of accounting, revenues are reported in the accounting period when the
a Cash Is Received
d when the service begins
b Service Or Goods Have Been Delivered
c when an invoice is sent
Provide descriptions for this transactions:
ABC Company Ltd. Purchases equipment of SR 20,000 in cash
a Increase in cash and decrease in assets
b Increase in Equipment and decrease in cash
c Decrease in expense and decrease in cash
d Increase in cash and increase in equipment
. Accrual accounting system is suitable for
Small or new businesses
Big
businesses
Limited companies
Very
small businesses
Under the accrual basis of accounting, expenses are reported in the accounting period when the
a Cash Is Paid
b Expense Matches The Revenues Or Is Used Up
c when payment is made
d when the expenses are due
Favorable balance in cash book implies
B) Debit balance in cash book
C) Bank overdraft
D) Adjusted balance of cash book
A) Credit balance in cash book
