Accounting Quize

 

#24.Trial balance is prepared to check the --------------- ?
A.Recording
B.Ledger
C.Accuracy
D.Journal

#25 What is the maturity date of a
30 days note dated January 5 ?
A.March 5
B.January 5
C.February 5
D.April 5

#26.Comparatively which of the
following method would result high
profit to the company?
A.LIFO
B.Specific Identification
C.WAC
D.FIFO

#27. Which one of the following is not the reason for the trail balance not to balance?
A.Balance was incorrectly computed
B.A balance entered in the wrong column
C.A debit entry was posted as debit
D.A debit or a credit posting was omitted


#28.Transactions should be first
recorded in a____then transferred
to_____
A.General ledger, journal
B.Book of primary entry, ledger
C.Book of secondary entry, Journal
D.Ledger, journal


#29. A special journal used to record only sales of merchandise on account is called_____
A.Sales journal
B.Purchase Journal
C.Cash receipt Journal
D.Cash paid Journal


#30. Which one of the following is the journal entry of Mr GOITOM Paid
salary of S10000 to its employees on September 30 of the current year?
A.Dr to cash and Cr to salary payable
B.Dr to account payable and Cr to cash
C.Dr to cash and credit to Sales
D.Dr to salary expense and Cr to cash

#31. In the 14th December on Saturday, employees of ABC company will be paid a salary. So, the day Saturday will be seen as ____
A.The pay Period
B.The pay Day
C.The payment
D.Salary

#32. In payroll sheet, the subtraction of all total deductions from gross earnings is called____
A.Take home pay
B.Net pay
C.Basic salary
D.A&B

#33. Which one of the following is basic Accounting equation? And Can you Justify Your Answer Please?
A.A=C+L
B.A=L+C
C.L=A-C
D.C=A+L

#34. Which of the following is a real account?
A. Office equipment
B. Rent expenses
C. Rent income
D. Insurance expense

#35. Which of the following accounts are closed at the end of an accounting period?
A. Nominal accounts
B. Balance sheet accounts
C. Real accounts
D. None of them

#36.  Trial balance is prepared to check accuracy of----
A. Ledger accounts balances
B. Balance sheet balances
C. Income statement balances
D. Cash flow statement balances

#37. Which of the following is true about a trial balance?
A. It lists down the balances of accounts
B. It lists down the balances of a balance sheet
C. It is a kind of financial statement
D. It is not a part of accounting cycle

#38. Liabilities are which of the following?
A. Resources
B. Obligations
C. Future benefits
D. Expenses

#39. Obligation of the Business are known as
A. Liabilities
B. Revenues
C. Expenses
D. Assets

#40..Net income will result during a time period when:
A)Assets exceed liabilities.
B) Assets exceed revenues.
C) Expenses exceed revenues.
D) Revenues exceed expenses.

#41. Cash brought by the owner to start business is called?
A. Capital
B. Loan
C. Drawing
D. None of these

#42. Cash received for services rendered will
A. Increase cash and liability
B. Increase equity and liability
C. Increase fixed assets and cash
D. Increase cash and equity

#43. Which of the following accounts will be debited if the business’s owner withdraws cash from business for his personal use?
A. Drawings
B. Cash
C. Business
D. Stock

#44. Journals are also referred as
A. Book of entries
B. Book of original entries
C. T account
D. Books of economic event

#45. Balance sheet is also known as ____ statement.
A.Income
B.Expense
C.Positional
D.None of the above

“A”
__1.Business entity
__2. Going concern
__3. Unit of measurement
__4. Cost
__5. Consistency
__6. Materialist
__7.Check
__8. Drawer
__9.Drawee
__10.payee
__11.deposit ticket
___12. Voucher
___13.voucher register
__14.check register
__15.petty cash
__16. Owner equity of corporation
__17. Dividends
__18. Cash dividend
__19 stock dividend
—-20. Periodic and perpetual


     “B”
A .It assume that a business enterprise is separate & distinct from the owners
B .It is assumed the business will continue its operation
C. All business transactions are recorded in terms of money
D. The amount of cash or equivalent given to acquire properties or service
E. In similar manner as before
F. Whole birr or dollar accounting which is used to eliminate the cents amount from accounting entry.
G.  A written instrument signed by a depositor, ordering bank to pay specified some of money to the order o designated person
H. A person who signed check
I. The bank on which the check is drawn
J. A person to whom the check is order by bank to pay
K. Print from supplied by bank for depositor that describe the amount deposited
L. Any document that serve as evidence authority to pay cash
M. Journal used to recorded each voucher or liability
N.Journal used to recorded payment of voucher
O.payments of relatively small amounts
P.capitals, stock holders equity, shareholders’ equity, shareholder investment
Q.a distribution by a corporation to its share holders
R.dividend paid in cash to share holders
S.a property distribution of shares of stockholders accompanied by a transfer of retained earnings to pay in capital account
T.two principal system of inventory accounting

#46. Record of financial transaction is done in ___
A.Journal
B.Balance Sheet
C.Trial Balance
D.None of the above

#47. In which order does the journal list transaction?
A.Chronological
B.Decreasing
C.Increasing
D.None

#48. Which of the following is known as a piece of evidence that a transaction took place?
A.Source Document
B.Cash Book
C.General Journal
D.Cash Receipts Journal

#49. Which of the following is NOT an item in the statement of financial position?
A.Bad debts
B.Cash
C.Building
D.Account receivable
E.Inventory

#50. Any cash that owners use as private is known as
A.Capital
B.Income
C.Liabilities
D.Drawing

#51. A business organized as a separate  legal  entity under state law having ownership divided into shares of stock is a  ---------- ?
A.Sole proprietorship
B.Partnership
C.Corporation
D.All are possible answer

#52. Which of the following is  odd to the class below ?
A.Account payable
B.Inventory
C.Prepaid expense
D.Cash
E.Account receivable

#53. Good will is an example of
A.Intangible asset
B.Current asset
C.Fixed asset
D.Liquid asset

45.If you sold on account one of the following accounts is debited?
A.Accounts receivable                   C. Capital
B.Accounts payable                        D. Sales
46.Which one of the following categories of account is credited with increased?
a.Revenue                         c. Assets
b.Purchases                       d.Expenses
47.All of the following financial reports except one are prepared regularly.
a.Balance sheet
b.Income statements
c.Bank reconciliation
d.Trial balance

48.Which of the following is included in the post closing trial balance?
                            a.Cash and accounts payable                                                   b .Sales
                           c.Salary expense                                                                      d. Revenue
49.Which one of the following is a nominal account?
a.Expense                                         c. Cash
b.Prepaid rent                                    d. Asset

50.Paid Birr 2,500 prepaid rent for three months; at the end of month Birr 800 is expired. Adjusting entry  is recorded as:
A.Debit prepaid rent and credit rent expense, Br 800.
B.Credit prepaid rent and debit rent expenses, Br 800
C.Debit prepaid rent, 2,500 and credit cash 2,500
D.Credit accounts receivable 2,500 and debit  rent expense 2,500

51.If the equipment account has a balance of $22,500 and its accumulated depreciation account has a balance of $14,000, the book value of the equipment is:
A.$36,500                         B. $22,500                      C. $14,000                   D. $8,500

1.Which one of the following increases credit account?
A.Supplies
B.Revenues
C.Cash
D.A and C
2.The long term asset that have been no physical existence but are right that have value is known as:
A.Current assets
B.Fixed assets
C.Intangible assets
D.Inventory
3.Any writing evidence in support of business transaction is called?
A.Journal
B.Ledger
C.Ledger posting
D.Voucher

1.Which one of the following is not a fixed asset?
a.Machinery
b. Plant
c.Equipment
d.Inventory
2.Which of the following is not an intangible asset?
a .Goodwill
b.Patent
c.Prepaid expenses
d.Copyright
3.Which of the following financial statements is generally prepared first?
a.Balance sheet
b.Statement of cash flows
c.Income statement
d.Statement of retained earnings

4.A payment of cash for the purchase of merchandise would be recorded in
A.Purchase journal
B.Sales journal
C.Cash journal
D.Purchase discount journal
5.The balance in unearned rent at the end of period represents:
A.An asset
B.A Liability
C.A Revenue
D.An Expense
5.A credit may signify  
A.An increase in asset account
B.A Decrease in asset account
C.A Decrease in liability
D.A Decrease in Capital
6.In a business transaction the first occurrence can be recorded in the book of accounts is
A.Journal
B.Ledger
C.Payment journal
D.Receipt journal