Which of the followings includes of all financial transactions of the life of a business ?
A.
Balance sheet
B.
General journal
C.
General ledger
D.
Accounting book
2.
This is an example of ____
A.
An Income Sheet
B.
A Balance Sheet
C.
A Trial Balance
D.
An Income Statement
3.
There was an amount of $10,000 in the bank of NP Ltd. On 7 November the owner took out $500 from the firm bank to pay for his son's bike. What is this called ? Which side is it recorded in, credit or debit?
A.
Saving, Credited
B.
Owning, Debited
C.
Drawings, Credited
D.
Drawings, Debited
4.
In the general journal there is a description saying what has been done after each transaction, what is it called?
A.
Discription
B.
narrator
C.
narration
D.
narrata
5.
Which 2 accounts are DEBITED when they are INCREASED?
A.
Bank and Loan
B.
Fees Revenue and Drawings
C.
Drawings and Loan
D.
Bank and Electricity
6.
Which group is Non-current assets?
A.
Equipment, Vehicle, Fittings
B.
Vehicle, Mortgage, Inventory
C.
Fittings, Equipment, Merchandise
D.
Furniture, Inventory, Machine
7.
Before preparing the balance sheet when a business is commenced, what are the 3 steps need to be done first, in order ?
A.
Journalising, Preparing Trial Balance, Recording into Balance Sheet
B.
Posting to Accounts, Preparing Trial Balance, Journalising
C.
Journalising, Posting to Accounts, Preparing Trial Balance
D.
Preparing Trial Balance, Posting to Accounts, Recording into Balance Sheet
8.
On 6 November, the company purchased a building for $1,800,000 from Johnson Control with $500,000 was paid immediately, the rest would be paid in 5 years, which accounts are affected?
A.
Building, Interest, Johnson Control
B.
Bank, Building, Loan
C.
Bank, Loan, Interest
D.
Building, Bank, Mortgage
9.
Which is the WRONG statement about drawings ?
A.
Drawings can be recorded in owner's capital
B.
Drawings is a contra owner's equity account
C.
Drawings is usually credited
D.
Drawings can be recorded in a drawings account
10.
Henry Restaurant owed $50,000 to the bank, it is repayable $5,000 each year. Is this non-current liabilities or current liabilities?
A.
Current Liabilities
B.
Non-current liabilities
C.
Both
11.
Choose the WRONG equation
A.
Net Assets = Owner's Equity
B.
Total Assets = Total Liabilities
C.
Total Assets = Total Liabilities and Owner's Equity
12.
Which one is Non- current Liabilities?
A.
Accounts Payable
B.
Long-term Loan
C.
Bank Overdraft
D.
Bank Card
13.
What types of accounts will be closed off after an accounting period?
A.
Expense & Revenue
B.
Expense & Liabilities
C.
Revenue & Assets
D.
Revenue & Liabilities
14.
Where are the debits and credits are transferred to after being journalised?
A.
A Trial Balance
B.
A Ledger
C.
An Account
D.
A Sheet
15.
Fill in the blanks: To INCREASE the balance of a proprietorship account, _____ the account. To DECREASE the balance of a proprietorship, ____ the account
A.
Debit, Debit
B.
Debit, Credit
C.
Credit, Credit
D.
Credit, Debit
16.
An account is ____ when an amount is entered on the left-hand side of a T account.
A.
Credited
B.
Decreased
C.
Debited
D.
Increased
17.
Is it True or False : 'Equity =Investment by the owner - Drawings by the owner + Income - Expenses.
A.
True
B.
False
18.
Choose the best narration to enter below this journal entry
A.
Bought non-current assets
B.
Purchased non-current assets
C.
Purchased office equipment on debit
D.
Purchased office equipment on credit
19.
What is not correct about a General Journal?
A.
Accounts in each transaction are listed in order: Current Assets, Non-current Assets, Current Liabilities...
B.
There are Totals at the bottom of Debit and Credit columns
C.
Each transaction has a narration
D.
There is a corresponding credit entry for each debit entry
20.
Fill-in the yellow cells
A.
Apr 1 | Balance b/d | 19 400
B.
Apr 1 | Balance b/d | 23 000
C.
Mar 31 | Balance b/d | 19 400
D.
Apr 1 | Balance c/d | 19 400
21.
Which is the best heading for an Income Statement ?
A.
Income Statement as at 30 June 2012
B.
Income Statement for the period ended June 2012
C.
Income Statement for the period ended 30 June 2012
D.
Income Statement at 30 June 2012
22.
To determine whether a profit or loss has been made for the accounting year, another account must be created. This is called the ______ , into which all revenue and expenses from the general ledger are transferred
A.
Profit and Loss Account
B.
Net Profit Account
C.
Revenue and Expenses Account
D.
Loss Account
23.
Do the closing entries in a General Journal have to be in a specific order?
A.
Yes, they do
B.
No, they don't. There is absolutely no order
24.
At the end of the accounting period, after closing the revenue and expenses to the Profit and Loss account, where is the net profit (loss) transferred to?
