1. The amount brought in by owner of the business should be credited to?

a) owners equity b) drawings (c) Cash (d) All of above

2. Which of the following transactions would have no impact on stockholders' equity?

(a) Purchase of the land from the proceeds of bank loan (b) Dividends to stock holders

(c) Net loss (d) Investment of cash by stockholders

3. Which of the following transactions occurs on daily basis in a large business
organization?

(a) Purchaser of equipment (b) Payroll (c) Credit sales

(d) Payment of suppliers

4. How much types a transaction has?

(a) One

(b) Two

(c) Three

(d) Four
5. Transactions are initially recorded in the?

(a) Book of Final Entry

(b) Accounting Equation

(c) T Accounts

(d) Book of Original Entry

6. Of the following account types, which would be increased by a debit?

(a) Liabilities and expenses

(b) Assets and equity

(c) Assets and expenses

(d) Equity and revenues

7. Sales made to Ahmed on credit should be debited to?

(a) Account Receivable

(b) Cash

(c) Account Receivable-Ahmed

(d) Sales
8. According to the rules of debit and credit for balance sheet accounts?

(a) Increase in assets, liabilities and owner equity recorded by debit

(b) Decrease in asset and liability are recorded by credit

(c) Increase in asset and owner’s equity are recorded by debit

(d) Decrease in liability and owner’s equity are recorded by debit

9. In which order does the Journal list transactions?

(a) Chronological (b) Decreasing

(c) Increasing (d) Alphabetical

10. All of the following are true regarding journal entries except?

(a) Journal entries show the effects of transactions

(b) Journal entries provide account balances

(c) The debited account titles are listed first

(d) Each journal entry should begin with a date

 
11. Which of the following accounts would be increased with a debit?

(a) Contributed Capital

(b) Retained Earnings

(c) Expenses

(d) Revenues
12. Which of the following account will be credited in the books of XYZ Co. Ltd, if the
business purchased a vehicle though cheque?

(a) Vehicle account

(b) Cash account

(c) Business account

(d) Bank account

13. The abbreviations for debit and credit (Dr. and Cr.) come from what language
words?

(a) Latin, debere and credere

(b) Latin, debtor and creditor

(c) Greek, debere and credere

(d) Greek, debtor and creditor

14. Which one of the following is used to record financial transactions in date wise
order?

(a) Account

(b) Voucher

(c) General Journal

(d) General Ledger

15. Accrued expenses are also called?

(a) Accrued liabilities

(b) Expenses incurred but not paid

(c) Both A & B

(d) None
16. Which one of the following is called book of original entry?

(a) General Journal

(b) General Ledger

(c) Trial Balance

(d) Receipt and Payment Account

17. Which of the following account/s will be affected under the rule of accrual
accounting, when furniture is purchased on cash?

(a) Only Cash Account

(b) Only Furniture Account

(c) Cash & Furniture Account

(d) Only Purchases Account

18. Purchased goods from Ahmed for cash should be credited to?

(a) Account Payable _ Ahmed

(b) Cash A/c

(c) Purchases A/c

(d) Account Receivable _ Ahmed

19. Credit terms of 1/10, n/30 mean that?

(a) Payment in full is due 10 days after date of the invoice

(b) If the invoice is paid within 10 days of its date, a 1% discount may be taken; otherwise the total

amount is due in 20 days

(c) Payment in full is due 30 days after date of the invoice

d) If the invoice is paid within 10 days of its date, a 1% discount may be taken; otherwise the total

amount is due in 30 days

20. Commission received is an example of?

(a) Real A/c (b) Personal A/c (c) Nominal A/c (d) None