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WorksheetsTerm Test Form 4 POA (Dec 2021)
Total questions: 76
Worksheet time: 1hrs 16mins
For a business owner, personal and business money can be put together and do not need to be kept separate.
TRUE
FALSE
The process of keeping the financial records of a business is known as
accounting.
controlling.
financing.
bookkeeping.
Why are accurate accounting records important to a business?
They prevent any financial losses.
They show the business how it is doing.
They increase the return on investments.
They give the business an image of success.
A creditor is most likely to examine a business’s financial accounting records if the business is
applying for a bank loan.
selecting a new market.
selecting a new market.
complying with regulations.
For an accounting system to be useful to the business, the accounting information it contains must be
accurate and up to date.
approved by the chief executive officer.
posted by an accountant.
recorded using the accrual method.
Which of the following is a true statement:
Bookkeeping is the same as accounting.
Bookkeeping does not use computers.
Bookkeeping is limited to information on sales.
Bookkeeping records business transactions.
Planning, recording, analyzing, and interpreting financial information are activities of:
accounting
accounting ethics
accounting careers
bookkeeping
According to the dual aspect concept of accounting,
entries involve a minimum of how many accounts?
0
1
2
3
TRANSACTION: Sold goods for cash.
According to the dual aspect concept, When cash is received, the cash account must have a record because cash does what?
Increases
Decreases
Stays the same
There is no reason to record anything in the cash account
Transactions and events that cannot be measured in money terms are not recorded in the books of accounts. It is due to Money Measurement Concept.
True
False
The system of recording transactions based on Dual Aspect Concept is known as ________ _________. (2 words)
(a)
The reason the owner/proprietor is treated as responsible only up to the extent of his capital is because of the:
(a) Cost Concept
(b) Business Entity Concept
(c) Going Concern Concept
(d) Materiality Concept
Creditors are considered to be
(a) users of accounting.
Management would be grouped under (a) users of accounting.
The accounting principle that states that the affairs of and owners should be accounted for separately:
Business Entity Concept
Going Concern Concept
Money Measurement Concept
Accounting Period Concept
Assets are recorded at their original purchase price according to the:
Materiality Principle
Historical Cost Principle
Cost Benefit Principle
Consistency Principle
Switching accounting principles every year would violate the principle of :
Conservatism
Historical Cost
Full Disclosure
Consistency
Accounting graduates can works as
1.External Auditors
2.Lawyers
3.Accountants
4.Tax Officers
1,3 and 4
1 and 3
1, 2 and 3
3 and 4
Government falls into which category of accounting users?
Internal users
External users
Taxation users
Audit users
Concept: Financial statements are prepared with the expectation that business will remain in operation indefinately
going concern
materiality
accounting period cycle
matching revenue with expenses
The principles of right or wrong that guide an individual in making decisions
Ethics
The law
Code of Conduct
Integrity
Following the correct accounting procedures, according to moral values and company ethical standards when available is __________________________________.
ACCOUNTING ETHICS
ENRON
ARTHUR ANDERSEN
BERNIE MADOFF
Choose the correct statement.
Business ethics are the moral principles to reach the greatest profit.
Business ethics are the moral principles to do the transaction and investation.
Business ethics are the moral principles that act as guidelines for the way a business conducts.
Business ethics are the moral principles that act as guidelines for businessman to do the negotiation.
Choose the correct statement.
We don't need ethics to determine what is “right” and what is “wrong"
Every aspect in business ethics can be negotiated.
The business negotiation doesn't need what is “right” and what is “wrong"
Ethics means determining what is “right” and what is “wrong".
Integrity means
trying to please the client
listening to the clients viewpoint
preparing accounts to the clients specifications
preparing accounts to show a 'true and fair wiew'
Objectivity means
Being 'whiter than white'
Being open and transparent
Investigating figures that appear inconsistent
Listening to the clients explanations
Fred is leaving the accounting practice to become the Finance Director of a client company. The ethical dilemma he is most likely to face would be
Confidentiality
Professional Behaviour
Professional Competence
Integrity
Objectivity
If you are notified by the Trinidad and Tobago Police Service that one of your clients is being investigated by the Fraud Squad, as the accountant.......
you have a duty to tell the client
you have a duty not to tell the client
it doesn't matter to the SCA whether you tell him or not
it makes no difference whether you tell him or not
This is the fundamental principle of ethics which is characterized as “to comply with relevant laws and regulations and avoid any conduct that the professional accountant knows or should know might discredit the profession.”
Integrity
Objectivity
Professional Behavior
Professional Competence and Due Care
Susan is an accountant who always makes sure to keep up-to-date on changes in technology, best practices, and regulations. This practice demonstrates which core ethic of accounting?
professional behavior
professional competence
integrity
confidentiality
Accountants should ensure that business advertisements are truthful and are NOT made to deceive the public or competitors. This principle is known as______________________
Confidentiality
Professional Competence
Objectivity
Professional behaviour
A professional accountant should not allow any bias or conflict of interest to cloud his professional judgment. This is known as _______________________.
Confidentiality
Professional Competence
Objectivity
Professional behaviour
A code of behavior considered correct for a specific group, association or profession is a called______________
Professional Body
Professional Ethics
Consequences
All f the Above
Which of the following are penalties resulting from inappropriate conduct and behavior in the work place?
Loss of trust
Inability to gain further employment
Instant termination of employment
All of the above
Which of the following is inappropriate accounting principles.
Fraudulent financial reporting
Theft of Inventory
misappropriation of funds
All of the Above
GAAP stands for:
Generally Accepted Auditing Procedures
Generally Accepted Accounting Principles
Generally Accepted Accounting Procedures
Generally Auditing Accounting Principles
Which type of accountant specializes in examining accounting transactions for law enforcement?
Public accountant
Forensic accountant
Government accountant
Management accountant
Which type of accountant records and analyzes financial information for use within a company?
Public accountant
Forensic accountant
Government accountant
Management accountant
Which type of accountant may perform investigations to ensure regulations or taxations are being followed?
Public accountant
Forensic accountant
Government accountant
Management accountant
Marcus is the CEO for his company? What does this acronym stand for?
Chief Execution Officer
Chief Executive Officer
Chief Effective Officer
Chief Emergency Officer
If you are the CFO for a company, what does that acronym mean?
Chief Executive Officer
Chief Financial Officer
Chief Focal Officer
Chief Fiscal Officer
Which of the following pairs are ASSETS ?
cash and creditors
land and debtors
debtors and creditors
Which of the following are Liabilities ?
(select all that apply)
debtors
creditors
bank overdraft
loan
Debtors Accounts are found in which Ledger?
Sales Ledger
Purchases Ledger
Which statement is TRUE ?
Journals are used to record cash transactions
The Cash Book is used to record cash transactions
If Assets=$2000 , Liabilities=$1500 , what is the value of Capital ?
$500
$1500
$2000
$3500
Which of the following are EXPENSES ?
(select all that apply)
carriage inwards
carriage outwards
sales
purchases
A business bought a computer paying $5000 by cheque.
What are the double entries to record this ?
Dr. Purchases $5000, Cr. Bank $5000
Dr. Computer $5000, Cr. Bank $5000
Dr. Bank $5000, Cr. Purchases $5000
3. Capital is contributed to the business by:
A) A loan from the bank
B) Assets
C) Capital
D) Owner
Which of the following BEST describes the accounting equation?
Capital = Assets - Liabilities
Assets + Capital = Expenses
Capital = Liabilities
Liabilities = Assets + Capital
Users of accounting information are:
External users
External users and Internal users
Subsidiary users
Internal users
Property owned by a business is called____
Liability
Asset
Property
Net Worth
Current Assets include cash or other assets that are expected to be converted to cash within a year
True
False
What are liabilities?
Money that the business has in stock
Money owed by the business to banks or suppliers
The amount of money owed to shareholders
Select the item which is a fixed asset
Select the item which is not a component of a balance sheet.
Fixed Assets
Current Assets
Current Liabilities
Expenses
Which item would represent a liability in a business?
Which of the following is an example of a current liability?
A. bank overdraft
B. 5 year bank loan
C. cash at bank
D. mortgage loan
Under which of the following would Cash be classified in a Balance Sheet?
A. Current Assets
B. Current Liabilities
C. Non-current Assets
D. Non-current Liabilities
Under which of the following headings would Accounts Receivable be entered in the Balance Sheet?
A. Capital
B. Fixed Assets
C. Current Assets
D. Current Liabilities
Which of the following would be entered in the liabilities section of the Balance Sheet?
A. Capital, accounts payable, cash
B. Cash, cash at bank, accounts payable
C. Accounts payable, bank overdraft, loan
D. Capital, cash, accounts payable
According to the Debit - Credit rules, any increases to the Cash at Bank account will be recorded on the _________ side of the ledger account.
left
right
middle
The transaction: Borrowed $20 000 from Sunbank will be recorded in the General Journal as:
Cash at bank (Dr) $20 000; Loan repayment (Cr) $20 000
Cash at bank (Cr) $20 000; Loan (Dr) $20 000
Cash at bank (Dr) $20 000; Loan (Cr) $20 000
Cash at bank (Dr) $20 000; Capital (Cr) $20 000
If the business records an opening balance on the Cr side of the Cash at Bank ledger account, the business has a _________ balance in their bank account.
positive
negative
zero
The business owner, Jack invested $9000 into the business bank account. What is the double entry to record this transaction?
Debit Bank and Credit Capital
Debit Capital and Credit Bank
Debit Capital and Credit Jack
Debit Jack and Credit Bank
Sold equipment by cash $700. What is the double entry to record this transaction?
Debit Cash and Credit Sales
Debit Cash and Credit Equipment
Debit Equipment and Credit Cash
Debit Sales and Credit Equipment
Bought a computer by cash $2500. What is the double entry to record this transaction?
Debit Computer and Credit Cash
Debit Cash and Credit Computer
Debit Cash and Credit Purchases
Debit Purchases and Credit Cash
Sold goods on credit to Mark. What is the double entry to record this transaction?
Debit Cash and Credit Sales
Debit Mark and Credit Sales
Debit Sales and Credit Mark
Debit Cash and Credit Sales
Bought goods worth $4000 on credit from Ben. What is the double entry to record this transaction?
Debit Purchases and Credit Cash
Debit Cash and Credit Purchases
Debit Ben and Credit Purchases
Debit Purchases and Credit Ben
Jack withdrew goods worth $500 from the business for his personal use. What is the double entry to record this transaction?
Debit Goods and Credit Jack
Debit Jack and Credit Drawings
Debit Drawings and Credt Purchases
Debit Purchases and Credit Drawings
Bought computers worth $3000 on credit from Computers Ltd. What is the double entry to record this transaction?
Debit Cash and Credit Computers
Debit Computers and Credit Cash
Debit Computers Ltd and Credit Computers
Debit Computers and Credit Computers Ltd
Paid the wages for the month $400 by cheque. What is the double entry to record this transaction?
Debit Cheque and Credit Wages
Debit Wages and Credit Bank
Debit Wages and Credit Cheque
Debit Bank and Credit Wages
Rent received by cheque $500. What is the double entry to record this transaction?
Debit Rent and Credit Cheque
Debit Bank and Credit Rent received
Debit Cheque and Debit Rent
Debit Rent received and Credit Bank
For a business owner, personal and business money can be put together and do not need to be kept separate.
TRUE
FALSE
