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WorksheetsLGS 117: Principle of Account
Total questions: 20
Worksheet time: 5mins
Double entry implies that:
Recording two aspects of every transaction
Recording entries in ledger account
Recording entries in journal
Which of the following account can be clarified as a real account
Rent income account
Cash account
Rent expenses account
Keeping the log of financial information in books of original entry is called
Recording
Processing
Calculating
Usually what asset account in a company’s ledger is the most liquid
Cash
Book
Cheque
Books of original entry are sometimes referred to as:
Books of save entry
Books of primary entry
Both A&B
The act of transferring the information from general journal to general ledger is called what?
Transferring
Posting
Journalizing
General journal is a book of ______ entries
Original
First
Secondary
Every business transaction effect at least _______ accounts
One
Two
Three
Discount allowed is a kind of deduction from:
Account payable
Account receivable
Discount account
Returns outwards daybook is use for recording
Credit purchase
Cash sales
Returns to suppliers
______ is the assets that can be seen and touched
Stock
Cash
A&B
______ is the assets that can neither be torched nor seen but are valuable to the business
Goodwill
Furniture
Stock
Liabilities represent the claim by outsiders over the assets of the organization. True/False?
(a)
Liquid assets are refers to cash in hand or at hand. True/False?
(a)
All the following are error not affecting the trial balance agreement except
Error of commitment
Error of transposition
Error of principle
Error of commotion occurs when a transaction is entered in the wrong account within the correct class of account. True/False?
(a)
Depreciation means a reduction in the value of an account over time due to wear and tear. True/False?
(a)
Prepayment is paying in advance. Yes/No?
(a)
The account equation is expressed as
Assets + liabilities = owner’s equity
Assets = liabilities + owner’s equity
Liability + investment + = equity
One operating cycle of a business, which could be a month, quarter, or year is referred to as:
Period
Round
Tally
