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Accounting-Module 1

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Which concept/convention requires the company's financial statements to have footnotes containing information that is important to users of the financial statements?

a)

Cost Concept

b)

Business Entity Concept

c)

Accounting Period Concept

d)

Disclosure Convention

2.

Which concept states that a business's records should never be mixed with an owner's personal records and reports?

a)

Cost Concept

b)

Separate Entity Concept

c)

Accrual Concept

d)

Materiality Convention

3.

Making the provision for doubtful debts and discount on debtors and valuation of the stock at cost price or market price which ever is less follows the convention of

a)

Full disclosure

b)

Materiality

c)

Consistency

d)

Conservatism

4.

........... Discount is not recorded in the books of accounts.

a)

Trade Discount

b)

Cash Discount

c)

GST

d)

VAT

5.

The usual sequence of steps in the transaction recording process is:

a)

ledger - journal - analyze.

b)

journal -ledger -analyze.

c)

analyze- journal - ledger.

d)

journal - analyze - ledger.

6.

Total assets in a business are Rs 8,00,000 and total liabilties are Rs 5,00,000. The difference is called:

a)

Goodwill

b)

Capital

c)

Expenses

d)

Income

7.

Goods sold on credit should be debited to..........

a)

Cash A/c

b)

Sales A/c

c)

Customer A/c

d)

Purchase A/c

8.

Every journal entry requires a posting to at least two accounts.

a)

True

b)

False

9.

The final step in the recording process is to

a)

analyze each transaction.

b)

enter the transaction in a journal.

c)

prepare a trial balance

d)

transfer journal information to ledger accounts

10.

when the owner takes money out of the business's account it is called _________?

a)

credit

b)

drawings

c)

debt

d)

borrowing