Principles Of Accounts-MCQ 2

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Question 1: Which is a liability of a business

1 point

amount owing by credit customers

amount owing to credit suppliers

long term loan to employee

property tax paid in advance

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Question 2: A trader divides his ledger into sales, purchases and general ledgers. Which statement is not correct?

1 point

It is easier to locate and refer to ledger accounts.

Maintaining the ledger can be divided between several people.

The same type of accounts can be kept together.

There are fewer entries in the sales and purchases accounts.

Clear selection

Question 3: Which error would cause the trial balance totals to disagree?

1 point

Business stationery purchased by cheque had not been recorded.

Goods purchased on credit had been debited to the supplier’s account

Goods sold on credit had been debited to the account of the wrong customer.

The purchase of a new machine had been debited to the purchases account.

Clear selection

Question 4: Amina is a wholesaler selling shoes to retailers. Which is a revenue receipt?

1 point

capital introduced

long-term bank loan

proceeds of sale of shelving at book value

proceeds of sale of shoes at list price

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Question 5:What is prepared to show the trading results for a financial year?

1 point

capital account

income statement

statement of financial position

trial balance

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Question 6: Which group contains only trading businesses?

1 point

driving school, motor insurance agency, vehicle repair business.

driving school, motor insurance agency, petrol station.

motor parts shop, vehicle repair business, car dealership.

motor parts shop, petrol station, car dealership.

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Question 7:What is the formula for calculating mark-up?

1 point

gross profit/ cost of sales

gross profit/ sales

profit for the year/cost of sales

profit for the year/sales

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Question 8:Sara does not keep a full set of accounting records. Which information is needed to calculate her total net purchases?

1 point

cash discount allowed

goods returned by customers

goods returned to suppliers

trade discount allowed

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Question 9:What is the meaning of the money measurement principle?

1 point

Assets are normally shown at cost price.

Only items with a monetary value are included in the accounts.

Profits are calculated after allowing for accruals and prepayments.

Profits are calculated on the basis of cash received less cash paid.

Clear selection

Question 10: A trader writes off an amount owed by Mustafa by debiting the bad debts account and crediting Mustafa’s account. Which accounting principle is the trader applying?

1 point

accounting entity

consistency

dual aspect

money measurement

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