The situation in which intangible asset are allocated over its estimated useful life is called

 

a. amortization

 

b. matching concept

 

c. dual concept

 

d. principle

 

 

 

 

 

Accountants do not count eggs but chicks. This accounting principle of

 

a. matching

 

b. consistency

 

c. realization

 

d. goin concern

 

 

 

 

If one non-current assets is used to offset the price of the new asset an organization want to buy is called

 

a. trade out

 

b. dividend

 

c. discount

 

d. trade in

 

 

 

 

The debt not tied to any particular asset of the borrowing entity is called

 

a. grant

 

b. unsecured liability

 

c. dividend

 

d. secured liability

 

 

 

 

 

An error which occurs when one or more digit(s) of a figure is transposed is called

 

a.ommission on one side of transaction

 

b. transposition

 

c. Casting

 

d. cost of goods

 

 

 

 

 

 

The assumption in which the last batches of goods are considered to be sold first prior to earlier purchases is known as

 

a. FIFO method

 

b. LIFO

 

c. straight line

 

d. Valuation

 

 

 

 

 

Accounting software are “computer programs that assist bookkeepers and accountants in recording and reporting on a firms financial transactions. Whose idea is this

 

a. IASB

 

b. IFRS

 

c. investopedia

 

d. ANAN

 

 

 

 

 

Which among the following error can affect the balancing of the trial balance

 

a. principle

 

b. commission

 

c. ommission

 

d. casting error

 

 

 

 

Accounting concept that recognizes an entity to last for a long period of time is known as

 

a. consistency

 

b. dual concept

 

c. matching concept

 

d. going concern

 

 

 

 

Goods bought by an entity for the purpose of resale is refer to as

 

a. stock

 

b. purchases

 

c. inventory

 

d.cost of goods

 

 

 

 

 

Profit and loss account is prepared to ascertain

 

a. net value

 

b. gross profit

 

c. net profit

 

d. gross loss

 

 

 

 

 

 

When an entity withdraws more cash from its bank account more than it actually has with the bank is known as

 

a. credit balance

 

b. cash withdrawal

 

c. overdraft

 

d. income

 

 

 

The assumption in which the last batches of goods are considered to be sold first prior to earlier purchases is known as

 

a. FIFO method

 

b. LIFO

 

c. straight line

 

d. Valuation

 

 

 

 

 

 

 

LIFO stands for

 

a. First Inner, First Out

 

b. First In, First Order

 

c. last -in -first- out

 

d. First In, First Outing

 

 

 

 

 

 

The method of valuing assets that uses predetermined rate set by the entitys management for the purpose of calculating the cost of sale and inventory is called

 

a. marginal cost

 

b. standard cost

 

c. job costing

 

d. process costing

 

 

 

 

 

 

Accountants do not count eggs but chicks. This accounting principle of

 

a. consistency

 

b. realization

 

c. goin concern

 

d. matching

 

 

The method of depreciation that value non-current asset at both the beginning and end of a period and the difference between the opening and closing values is called

 

a. revaluation

 

b. balancing

 

c. average

 

d. straight line

 

 

 

 

 

 

The process of allocating the cost of tangible non-current over its estimated useful life as expense to the income statement is called

 

a. assets

 

b. depletion

 

c. depreciation

 

d. loan

 

 

 

 

 

 

A situation in which an entity utilizes depreciation as a means to set aside money to specifically replace an assets is called

 

a. amortization

 

b. funding depreciation

 

c. stock in

 

d. valuation

 

 

 

 

 

The process of allocating the cost of a wasting asset to the different accounting periods is refers to as…

 

a. amortization

 

b. depletion

 

c. net book value

 

d. net value

 

 

 

 

 

 

The debt not tied to any particular asset of the borrowing entity is called

 

a. secured liability

 

b. grant

 

c. dividend

 

d. unsecured liability

 

 

 

 

 

An error which occurs when one or more digit(s) of a figure is transposed is called

 

a. casting

 

b. cost of goods

 

c. transposition…

 

d. omission on one side of transaction

 

 

 

 

 

 

 

 

 

The distinction between the sales revenue and cost of sales is refer to as

 

a. net value

 

b. cost of goods

 

c. goods for resale

 

d. gross profit

 

 

 

 

 

 

A transaction between cash and bank is called

 

a. bank statement

 

b. contra entry

 

c. balancing

 

d. bank overdraft

 

 

 

 

 

 

use of suspense account arises when

 

a. goods are bad

 

b. he trial balance fails to balance

 

c. there is gross profit

 

d. trial balance sides are equal

 

 

 

 

 

 

one of the following asset have a physical form

 

a. trademark

 

b. copy right

 

c. Land

 

d. patent right

 

 

 

 

 

Which among these is not an item of profit and loss account

 

a. advertisement

 

b. wages

 

c. interstates

 

d. return inward

 

 

 

 

 

The distinction between current assets and current liability is called

 

a. stock at close

 

b. net book value

 

c. working capital

 

d. residual value

 

 

 

 

 

 

 

 

he full meaning of IFRS is

 

a. Internal Financial Reporting Standard

 

b. International Funds Regulatory Service

 

c. International Financial Reporting Standards

 

d. Internal Financial Reporting Standard

 

 

 

 

 

 

One of the following error cannot affect the balancing of trial balance

 

a. transposition

 

b. casting

 

c. omission on one side of transaction

 

d. error of principle

 

 

 

 

 

The advantage of computerised accounting system that make it less time to process accounting information is

 

a. Reliable

 

b. Speed

 

c. accuracy

 

d.complete

 

 

 

 

 

Goods bought by an entity for the purpose of resale is refer to as

 

a. purchases

 

b. inventory

 

c. stock

 

d. cost of goods

 

 

 

 

 

 

The method that applies a simple average of the unit costs/prices to the goods sold to determine the cost of goods sold and average of the unit costs to the units of closing inventory to get the value of closing inventory is known as

 

a. machine hour

 

b. simple average

 

c. depletion

 

d. balancing

 

 

 

 

 

 

One of the following is not a method of stock valuation

 

a. revenue

 

b. LIFO method

 

c. weighted average

 

d. FIFO method

 

 

 

 

 

 

Goods bought by an entity for the purpose of resale is refer to

 

a. purchases

 

b. goods for resale

 

c. sales

 

d. stocks

 

 

 

 

 

 

Which among the following is not a cash book items

 

a. drawings

 

b. sales

 

c. cash

 

d. Suspense

 

 

 

 

 

 

Which among the following error can affect the balancing of the trial balance

 

a. ommission

 

b. principle

 

c. casting error

 

d. commission

 

 

 

 

 

The Unsold portion of goods held for resale are generally referred to as

 

a. stock

 

b. assets

 

c. goods in store

 

d. inventories

 

 

 

 

In classifying assets, patent and trade mark ill be listed on

 

a. fixed asset

 

b. investment asset

 

c. intangible asset

 

d. current asset

 

 

 

 

 

one of the following asset have a physical form

 

a. Land

 

b. trademark

 

c. patent right

 

d. copy right

 

 

 

Which among these is not an item of profit and loss account

 

a. interstates

 

b. return inward

 

c. wages

 

d. advertisement

 

 

 

 

 

A cheque issued by entity to a third party and have been credited to the cash book but not yet debited by the bank in the bank statement but have not presented them to the bank for payment is known

 

a. standing order

 

b. uncredited cheque

 

c. dishonoured cheque

 

d. unpresented cheque

 

 

 

 

 

 

Subscription in advance is an example of

 

a. prepayment….

 

b. subscription

 

c. liability

 

d. donation

 

 

 

Total accounts are sometimes referred to as

 

a. ledgers

 

b. journal proper

 

c. suspense account

 

d. control account

 

 

 

 

 

 

 

Cash in hand is a charge to

 

a. fixed asset

 

b. current asset

 

c. investment asset

 

d. tangible asset

 

 

 

 

 

The use of suspense account arises when

 

a. trial balance sides are equal

 

b. there is gross profit

 

c. the trial balance fails to balance

 

d. goods are bad

 

 

 

 

 

A resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity is called

 

a. assets

 

b. residual value

 

c. cash

 

d. cost of goods

 

 

 

 

 

 

The distinction between the sales revenue and cost of sales is refer to as

 

a. cost of goods

 

b. gross profit…..

 

c. net value

 

d. goods for resale

 

 

 

 

 

The process of allocating the cost of a wasting asset to the different accounting periods is refers to as…

 

a. net value

 

b. net book value

 

c. amortization

 

d. depletion

 

 

 

 

An error which occurs when one or more digit(s) of a figure is transposed is called

 

a. transposition

 

b. cost of goods

 

c. ommission on one side of transaction

 

d. casting

 

 

 

 

 

The method of valuing assets that uses predetermined rate set by the entitys management for the purpose of calculating the cost of sale and inventory is called

 

a. job costing

 

b. marginal cost

 

c. process costing

 

d. standard cost

 

 

 

 

 

In the course of business activities, the amount an entity owes its suppliers and others is called

 

a. account payable

 

b. subscription

 

c. donation

 

d. account receivable

 

 

 

 

 

The process of allocating the cost of tangible non-current over its estimated useful life as expense to the income statement is called

 

a. depletion

 

b. assets

 

c. Depreciation

 

d. loan

 

 

 

 

 

 

The period of time the non-current asset is expected to generate benefit to the entity that acquired it is called

 

a. residual life

 

b. depreciation

 

c. useful life

 

d. accounting year

 

 

 

 

 

Journals are broadly classified into Specific and

 

a. impersonal

 

b. nominal

 

c. general

 

d. personal

 

 

 

 

 

A situation in which an entity utilizes depreciation as a means to set aside money to specifically replace an assets is called

 

a. stock in

 

b. funding depreciation

 

c. amortization

 

d. valuation

 

 

 

 

 

The debt not tied to any particular asset of the borrowing entity is called

 

a. dividend

 

b. grant

 

c. unsecured liability

 

d. secured liability

 

 

 

 

The fixed and regular payments an entity authorizes the bank to pay to third parties on its behalf is known as

 

a. credited order

 

b. dishonoured cheque

 

c. standing order

 

d. insurance order