Level Three Theory (Knowledge) Choice

1. The correct accounting cycle sequence

a. Financial statements – trail balance – journalizing – posting
b. Trial balance – financial statements – posting – journalizing
c. Journalizing – posting – trial balance – financial statements
d. Posting – journalizing – trial balance – financial statements
2. Ato Lemma the owner of the business invested birr 50,000 in cash and a building costing birr
100,000.
a. Debit, lemma capital birr 150,000 and credit cash birr 50,000 and building birr 100,000
b. Debit cash birr 50,000, debit building birr 100,000 and credit lemma capital birr 150,000
c. Debit cash birr 150,000 and credit lemma capital birr 150,000
d. Debit building birr 150,000 and credit cash birr 150,000
3. Among the following accounts which pair accounts subsidiary ledger
a. Fixed assets and inventories
b. Revenues and expenses
c. Accounts receivables
d. Fixed assets and accounts receivables
4. A machine was purchased for birr 350,000 and has estimated salvage value of the book value
a. 340,000 b. 265,000 c. 275,000 d. 85,000
5. Assume that the gross salary of w/ro lemlem was birr 5600 and the pension contributed by
w/ro lemlem was birr 280 for the month the amount of earnings other than basic salary and
assume that payment pension contribution by 7%
a. 400 b. 1,800 c. 1,600 d. 392
6. Which one is permanent account?
a. Unearned revenue
b. Drawing
c. Income summary
d. Fees earned
7. One of the following is optional in accounting cycle
a. Preparing financial statements
b. Closing entry
c. Adjusting entry
d. Preparing spreadsheet/work sheet
8. Among the following one is indirect tax
a. BIT c. Payroll Tax
b. VAT d. Rent Income Tax
9. The credit term of company is stated as 1/10, n/30 meaning to say
a. If the customer paid within 10 days he has a discount 1% otherwise pay total amount
within 30 days
b. If the customer paid within 30 days he has a discount of 1%
c. The customer should pay 1% within 10 days and the remaining within 30 days
d. If the customer paid within 10 days he has no discount.
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Question number 10 upto 13 based on the following information
Assume that the beginning of the period the balance account receivable and allowance for
doubtfull accounts were birr 110,000 and 20,000 respectively credit sales and collection
of accounts receivable during the period of birr 100,000 and birr 80,000 respectively.
Besides during the priod accounts receivable of birr 1200 has been written off based on
past experience 1% of credit sales expected to be uncollectable(hint use allowance
method)
10. How much is the balance of accounts receivable at the end of the period
a. 270,000 b. 190,000 c. 188,800 d. 165,800
11. Bad debt expense for the period is equal to:
a. 1,600 b. 1,690 c. 800 d. 1,650
12. The balance of allowance for doubt full account at the end of the period
a. 3600 b. 800 c. 2,800 d. 110,000
13. Net realizable value is equal to:
a. 191,200 b. 186,400 c. 185,200 d. 192,400
14. Which one has a credit normal balance
a. Withdrawal c. Prepaid insurance
b. Accumulated depreciation d. Income summary
15. One of the following errors can be identified with trial balance?
a. Recording a single transaction twice
b. Omitting cash instead of account receivable with same account
c. Omitting a transaction
d. Posting an account to the wrong side
16. The debit side of an account represent:
a. Increase c. Left side
b. Decrease d. Right side
17. All of the following financial reports are prepared for specific period of time except:
a. Balance sheet c. Bank Reconciliation
b. Income statement d. Trial Balance
18. Assume that merchandise inventory in the beginning was birr 30,000 and net purchases
during the period was birr 55,000 at the end of the period physical shown ending
merchandise of birr 20,000, how much was the net sales during the period and if the gross
profit was birr 25,000?
a. Birr 65,000 b. Birr 45,000 c. Birr 85,000 d. Birr 90,000
19. Organizational structure resource process and procedures needed implement quality
management
a. Quality control c. Management
b. Quality assurance d. Quality System
20. The current sequence of partnership liquidation process
a. Payment of liabilityselling NCA for cashdistribution of cash to partner
b. Selling of NCA for cashdistribution of cash to partner payment of liability
c. Selling of NCA for cash  payment of liability distribution of cash to partner
d. Payment of liabilitydistribution of cash to partner selling NCA for cash
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21. The exchange of information between people example, by means speaking, writing, etc. by
using a common system of signs or behaviors is:
a. Communications c. Communication channel
b. Communication Agency d. Sign language
22. Business transaction are recorded in the first book of accounts called:
a. Journal c. Ledger
b. Payment journal d. Receipt journal
23. Properties owned by business
a. Asset c. Liability
b. Capital d. Revenue
24. Post-closing trial balance may include which one of the following accounts?
a. Sales c. Salary Expense
b. Accounts receivable d. Interest Expense
25. Assume that you have 500 euro in your hand what is the equivalent amount of it in USD if
the exchange rate for USD is birr 18 and for euro 24 birr?
a. 666.67 c. 5833.33 USD
b. 5000 USD d. 120,000 USD
26. Goods and documents are examined in accordance with legislative requirements plus it needs
bank permits based on CBE directives. This refers to
a. To have principle and legislative certificates
b. Related to import and expert activities
c. Regarding declaration of tax
d. Internal control system
27. Payments of cash for settlement of purchase on account would be recorded by:
a. Cash debit c. A/payable debit
b. A/payable credit d. A/receivable debit
28. Credit may signify
a. Increase in assets c. decrease in assets
b. Increase in liability d. Increase in capital
29. What is the maturity value of 90 day 12% for Br 100,000
a. 9,000 b. 5,000 c. 3,000 d. 1,500
30. Salary expense has credit balance of Br 10,000 on Hamle 1, beginning of the period after
reversing entry posted but before any transaction occurred the balance represents:
a. Assets b. Revenue c. Liability d. Expense
31. A balance in unearned rent at the end of a period represent
a. Assets b. Revenue c. Liability d. Expense
32. Controlling account that summarize the balance of each customer is
a. A/payable c. A/receivable
b. Merchandise inventory d. Income Summary
33. Payment of merchandise is recorded in
a. Purchase journal c. Sales journal
b. Cash payment journal d. Cash Receipt Journal

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34. Petty cash fund
a. Used to pay up to 1,000 birr c. used to pay small amount
b. Apply in small enterprise d. used to reimburse change fund
35. One of the following account is not closed at the end of the fiscal period
a. Expense c. Revenue
b. Income Summary d. Liability
36. Type of loans granted for a period of a night to maximum of 14 years is
a. Cash credit c. term of loan
b. Money at call d. overdraft loan
37. Corporate financial statement do not report needs amount. This is an expression of
a. Business entity c. Materiality
b. Going concern d. Disclosure
38. Assets in statement of financial condition for individual report at
a. Cost c. Lower of cost or market
b. Estimated cost d. Market value
39. Which one of the following is not characteristics of taxation
a. It is compulsory levy
b. It provides non proportionate return or profit
c. It finances government activities
d. It is an illegal collections
40. The following are banking procedure except:
a. Investment of funds on hand
b. Closing the bank account
c. Post closing trial balance
d. Opening the bank account
41. Which of the following pairs of accounts does a cash purchase affect?
a. Bank and equipment
b. Supplies and Bank
c. Bank and Creditors control
d. Equipment and creditors control
42. All are under the same classification of chart of accounts except:
a. Supplies
b. Accumulated depreciation
c. Prepaid rent
d. Sales
43. One of the following is usually prepaid?
a. Gas
b. Telephone
c. Electricity
d. Insurance
44. One of the following is not shown on the Balance Sheet.
a. Current assets c. Capital
b. Long term liabilities d. Expenses
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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 c. Sales
b. Salary expense d. Revenue
49. Which one of the following is a nominal account?
a. Expense c. Cash
b. Prepaid rent d. Asset
50. When you borrow Br 500,000 and paid it in your current account the following pairs of
accounts is affected?
a. Rent and Bank c. Loan and VAT
b. Loan and Bank d. trade creditors and Bank
51. All have the same normal balance sides except:
a. Rent expense
b. Salary payable
c. Cash
d. Accounts receivable
52. Organizational structure, resources, procedures, and processes implement quality
management.
a. Quality control
b. Quality assurance
c. Management
d. Quality system
53. The uniform distribution of depreciation over the life of plant assets?
a. Straight line
b. Sum of the years digit
c. Double declining
d. Units of production
54. Which one of the following is the most liquid asset?
A. Check
B. Commercial Paper
C. Accounts receivable
D. All of the above

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55. When sold on account debit where?
A. Account Payable
B. Accounts Receivable
C. Notes Receivable
D. Notes Payable
56. Which one of the following is a liability account?
A. Owner’s Equity
B. Account s Receivables
C. Accounts payable
D. All of the above
57. Which one of the following increases credit account?
A. Supplies
B. Revenues
C. Cash
D. A and C
58. Paid Birr 2,500 prepaid rent for three months; at the end of month Birr 800 is expired.
Adjustment 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
59. Which one of the following is an intangible asset?
A. Trade marks
B. Patents
C. Copyrights
D. All of the above
60. Which one of the following is not subsidiary ledger?
A. Accounts receivable
B. General ledger
C. Accounts payable
D. Cash
61. 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
62. The debt which are to be repaid within a short period of that means ( a year or less ) is known
as:
A. Current liabilities
B. Fixed liabilities
C. Contingent liabilities
D. All of the above
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63. Any writing evidence in support of business transaction is called?
A. Journal
B. Ledger
C. Ledger posting
D. Voucher
64. The asset to be consumed or converted in one year is:
A. Patents
B. Fixed assets
C. Current assets
D. Current liabilities
65. What is the advantage of ATM?
A. Transfer money
B. For payment
C. Payment withdrawal
D. All of the above
66. Which one of the following is true about accounting?
A. It plays an important role in our economic and social system.
B. Its objective is to record, summarize, report and interpret the economic data for use.
C. Accounting is often called the language of business.
D. All of the above
67. The properties owned by a business enterprise are referred to as ___________ and the rights or
claims to the properties are referred to as __________.
A. assets, equities C. revenue, expense
B. assets, liabilities D. assets, owner’s equity
68. Which one of the following is the claim against the customer?
A. Notes receivable C. Accounts receivable
B. Accounts payable D. Notes payable
69. All of the following are correct except:
A. The effect of every transaction can be stated in terms of increases and/or decreases.
B. The equality of the two sides of the accounting equation is always maintained.
C. The owner’s equity is increased by amounts invested by the owner and is decreased by
withdrawals by the owner.
D. The balance of revenue decreases the balance of owner’s equity.
70. A profit making business that is a separate legal entity and in which ownership is divided into
shares of stock is known as a_________
A. Sole proprietorship C. Partnership
B. Single proprietorship D. Corporation
71. A debit may signify:
A. an increase in an asset account C. an increase in a liability account
B. a decrease in an asset account D. an increase in the owner’s equity account
72. The form listing the balances and the titles of the accounts in the ledger on a given date is the:
A. Income statement C. Retained earnings statement
B. Balance sheet D. Trial balance

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73. 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
74. If merchandise is sold on account to a customer for $1,000, terms FOB shipping point,1/10,
n/30, and the seller prepays $50 in transportation costs, the amount of the discount for early
payment would be:
A. $0 B. $5 C. $10 D. $10.50
75. The balance in unearned rent at the end of a period represents:
A. an asset B. a liability C. a revenue D. an expense
76. A list of assets, liabilities, and owner’s equity of a business entity as of a specific date is:
A. a balance sheet C. a statement of owner’s equity
B. an income statement D. a retained earnings statement
77. If total assetsincreased by $20,000 during a period of time and total liabilitiesincreased by
$12,000 during the same period, the amount and direction(increase or decrease) of the period’s
change in owner’s equity is:
A. $32,000 increase C. $8,000 increase
B. $32,000 decrease D. $8,000 decrease
78. If revenue was $45,000, expenses were $37,500, and the owner’s withdrawals were $10,000, the
amount of net income or net loss was:
A. $45,000 net income C. $37,500 net loss
B. $7,500 net income D. $2,500 net loss
79. The final phase of the revision of an accounting system that involves carrying out the proposals
for changes in the system is termed:
A. Systems analysis C. Systems implementation
B. Systems design D. None of the above
80. The detailed procedures used by management to direct operations to that enterprise goals can
be achieved are termed:
A. Internal controls C. Systems design
B. System analysis D. Systems implementation
81. A payment of cash for the purchase of merchandise would be recorded in the:
A. Purchases journal C. Sales journal
B. Cash payments journal D. Cash receipt journal
82. The income statement in which the total of all expenses is deducted from the total of all revenue
is termed:
A. Multiple step form C. Account form
B. Single step form D. Report form
83. On a multiple step income statement, the excess of net sales over the cost of merchandise sold is
called:
A. Operating income C. Gross profit
B. Income from operations D. Net income
84. Which of the following expenses would normally be classified as “other expense”?
A. Depreciation expense C. Insurance expense
B. Sales salaries expense D. Interest expense

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Answer question number 20 – 23, based up on the following information:

For the fiscal year, Net Sales were 895,000 and the Cost of Merchandise Purchased was 625,000.
Merchandise inventory at the beginning of the year was 80,000, and at the end of the year it was
70,000.

85. What is the amount of merchandise available for sale?

A. 705,000 B. 975,000 C. 150,000 D. 695,000
86. What is the amount of Cost of merchandise sold?
A. 635,000 B. 825,000 C. 695,000 D. 150,000
87. What is the amount of Gross profit?
A. 260,000 B. 70,000 C. 200,000 D. 745,000
88. What is amount of merchandise inventory listed on the balance sheet as of the end of the year?
A. 70,000 B. 80,000 C. 150,000 D. 10,000
89. Which one of the following is reported on statement of cash flow as investing activities?
A. Cash received from customers C. Cash paid for land
B. Cash payments for expenses and to creditors D. Cash payments for dividends
90. 2/15, n/45 indicates:
A. The credit period is 45 days, if the buyer pays within 15 days there is a discount of 2%.
B. The credit period is 15 days, if the buyer pays within 15 days there is a discount of 2%.
C. The credit period is 45 days, if the buyer pays within 30 days there is a discount of 2%.
D. The credit period is 30 days, if the buyer pays within 15 days there is a discount of 2%.
91. What is the journal entry of purchase for cash?
A. Purchase debit and cash credit C. A/receivable debit and Sales credit
B. debit and Purchase credit D. Cash debit and Sales credit
92. An account that classified as other expense is:
A. Depreciation Expense for office equipment
B. Sales salaries expense
C. Insurance expense
D. Interest expense
93. A that reports the operating results of a company is a/an:
A. Income statement
B. Cash flow statement
C. Balance sheet
D. Owner’s equity
94. The normal balance side of drawing account is:
A. Debit side
B. Credit side
C. Decreases side
D. Both debit and credit
95. What the business owed is:
A. Asset C. Capital
B. Liability D. Expense

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96. Correct accounting equation is:
A. A=L+C
B. A=C-L
C. L=A+C
D. C=A+L
97. The correct flow of accounts with chart of account if:
A. Assets, liabilities, capital, expenses and revenues
B. Assets, liabilities, capital, revenues and expenses
C. Assets, capital, assets, revenues and expenses
D. Liabilities, capital, assets, revenues and expenses
98. The process of recording entries/transactions in a journal is:
A. Journalizing
B. Posting
C. Sorting
D. Classifying
99. If the total asset increased by birr 40,000 during a period of time and total liability increased by
birr 24,000 during the same period the amount and direction of the period’s change in owner’s
equity is:
A. Birr 64,000 increase
B. Birr 64,000 decrease
C. Birr 16,000 decrease
D. Birr 16,000 increase
100. The account which is closed to income summary account at the end of period:
A. Cash
B. Salary expense
C. Capital
D. Liability
101. The post-closing trial balance would include which of the following accounts:
A. Cash
B. Sales
C. Salary expense
D. Revenue
102. The balance in unearned rent at the end of a period represents:
A. Asset
B. Liability
C. Revenue
D. Expense
103. On July 1, the first year salary expense has a credit balance of birr 5,500. On July 3, the first
pay day in the year, salaries paid of birr 21,700 are paid. What is the salary expense for July 1-3?
A. Birr 5,500
B. Birr 16,200
C. Birr 21,700
D. Birr 27,200

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104. Checks issued and recorded by the company but not yet presented to the bank for payment
are:
A. Outstanding checks
B. Deposit in transit
C. Paid checks
D. Service charge
105. The most liquid asset:
A. Accounts receivable
B. Notes receivable
C. Cash
D. Supplies
106. An over statement of ending inventory result in:
A. An over statement of total assets
B. An understatement of net income
C. An understatement of net income
D. Understatement of net income
107. If revenue was birr 45,000 expenses were birr 37,500 and the owner’s withdrawal were birr
10,000, the amount of net income or net loss was:
A. 45,000 net income
B. 7,500 net income
C. 37,500 net loss
D. 2,500 net loss
108. Accounting information should not be:
A. Relevant
B. Reliable
C. Timelines
D. Unreliable
109. Accounting is not concerned with:
A. Design of the accounting system
B. Preparation of financial statements
C. Interpretation of the reports
D. Interpretation of non-financial transactions
110. A debit may signify:
A. An increase in expense account
B. A decrease in asset account
C. An increase in liability account
D. An increase in revenues
111. Direct tax
A. Employee income tax
B. Turnover tax
C. VAT
D. TOT

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112. Distribution of earnings to stockholders is:
A. Retained earnings
B. Withdrawals
C. Dividend
D. Expenses
113. Which one of the following reconciling item necessitates of an record
a. Bank service and note collected by bank
b. Deposit in transit and bank outstanding checks
c. Error made by bank and outstanding checks
d. Deposit in transit and bank service charge
114. Which one of the following is not the permanent document?
a. General ledger b. Worksheet c. Journal d. Balance sheet
115. The debit and credit column of an income statement in the worksheet are Br 65,000 and
90,000 respectively. If the credit total of the balance sheets Br 10,000, then what will be the credit
total of the balance sheet column before net income or net loss is recorded?
a. 135,000 b. 155,000 c. 85,000 d. 90,000
116. Which of the following accounts will appear in post closing trial balance of a business?
a. Drawing b. Sales Revenues c. Salary Expense d. Accumulated Depn.
117. Which of the following is/are not the external users of accounting information or report of a
particular organization?
a. ERCA b. Potential Investors c. Sales Manager d. Credit Grantor
118. The form which lists an accounts with its respective balance for a specific organization:
a. Income statement c. Trial Balance
b. Income summary d. Balance Sheet
119. If the appropriate adjusting entries for accrued sales is omitted at the end of fiscal year:
a. Asset for the period will over state
b. Liabilities for the period will understate
c. Expense for the period will over state
d. Equity for the period will understate
120. A nominal sum of money established as change fund from which minor cash disbursement for
valid business purpose
a. Change fund b. Cash shortage c. Petty Cash d. Cash shortage
121. Which of the following journal is used to record correcting and adjusting entries
a. Cash journal b. Sales journal c. Payment journal d. General journal
122. Which of the following items are cash and cash equivalent?
a. Bank draft and notes receivable
b. CPO(cash payment order) and prepayment
c. Check and bank draft
d. CPO and BID bond
123. System or mechanism to recovering and collect bad debts
a. Legal action and letter of notes
b. Allow purchase discount and return goods
c. Third party intervention to allow sales discount

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 d. Liaison which clients to allow purchase discount
124. A card which is used to effect payment or withdraw money in real time by accessing the card
holder’s deposit account and function only if there is sufficient fund balance
a. Credit card b. Debit card c. Locality card d. Withdraw card
125. An electronic banking out let:
a. ATM (Automated Teller Machine) c. Automated Seller Machine
b. POS (Point of Sale) d. CPO (Cash Payment Order
126. Trader who can accept card as payment tools in exchange for the product or service he/she
sales to the card holder
a. The issuer b. The acquire c. The merchant d. The card association
127. One of the following is internal user of a company
a. The creditor c. Employees and trade union
b. Owners d. The production manager
128. A statement that reports the operating results of a company
a. Income statement c. Capital Statement
b. Balance sheet d. Cash flow statement
129. The following data are taken from the company; liabilities, Br 90,000 and asset is three times
equity, calculate the assets and capital
a. Asset, Br 90,000 and Capital, Br 45,000
b. Asset, Br 45,000 and Capital, Br 120,000
c. Assets, Br 135,000 and Capital, Br 120,000
d. Assets, Br 90,000 and Capital, Br 120,000
130. If the revenue was br 90,000 expense 5,000 withdrawal Br 20,000. What is the amount of net
income or net loss?
a. Net income, Br 90,000 c. Net income, Br 20,000
b. Net loss, Br 75,000 d. Net income, Br 85,000
131. One of the following is the controlling account of customers account
a. Accounts payable c. Accounts Receivable
b. Bank account d. Credit account
132. Which one of the following is needed to bank reconciliation?
a. Check the depositor balance with customer account
b. Check the depositor balance with bank balance
c. Check bank balance with withdrawals
d. Check the account itself
133. In the corporation the company claims two factors that is
a. Retained earnings and withdrawal c. Assets and withdrawals
b. Dividend and retained earnings d. Withdrawal and dividend

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 Matching 1
‘A’ ‘B’
1. Balance sheet F A. Continuous Improvement
2. Retained Earnings H B. Press release
3. Coaching and monitoring C C. Provide assistance of problem solving
4. Performance measurement A D. Business entity concept
5. Promotion B E. Monitory and evaluation work place learning
6. Feedback P F. Security equipment
7. Sales tax L G. Source of document
8. Method of communication J H. Corporation
9. Spread sheet K I. Freight In and Out
10. Expense account I J. Speaking to group
11. Income summary account to close N K. Software function
12. Complete documentation G L. Consumer
13. Specific need of customer Q M. Automatic function of software
14. Plan spread sheet N N. Capital
15. Formula O O. Percentage
P. Related service processes and record
Q. Culture

Matching 2
‘A ’ ‘ B’
1. Final step in accounting cycle F A. Prime Cost
2. Something that is owned H B. Journal
3. United record sales on account E C. Ledger
4. Report issued for short period G D. Assets
5. First book of entry B E. Accounts receivable Ledge
6. Second book of entry C F. Post-closing trial
7. Direct manufacturing costs A G. Interim report balance
8. Something that is owed H . I. Debit Side
9. Non Taxable Allowance K J. Taxable Allowances
10. Partnership Agreement N K. Desert Allowances
11. The most Liquid Assets M L. Sales Journal
12. Shows financial position of business P M. Cash
13. Shareholders Q N. Articles of Partnership
14. Cost of Finance Q O. Interest
P. Balance Sheet
Q. Stockholders

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 Matching 3
‘A’ ‘B’
1. Recording the different transactions in a single place H A. Interim Report
2. The process of recording transaction from journal to ledger K B. Taxes, fees, and penalties
3. Major sources of government revenue B C. Unlimited Liabilities
4. Continuous improvement process L D. Limited Liabilities
5. Expenses paid in advance O E. Income statement
6. The value of resource used in generating revenue N F. Investing cash flow
7. Detail records about a specific item I G. Periodic Inventory System
8. Determining ending inventory based on physical count G H. Journal
9. Report that covers a short period of time such as a month A I. Subsidiary Ledger
10. At any time the balance of the inventory can be determined J J. Perpetual inventory system
11. Characteristic of Partnership C K. Posting
12. Characteristics of Corporation D L. Kaizan
13. Shows the financial performance of the business E M. Financing cash flow
14. Cash flow from selling of fixed assets F N. Prepaid Expenses
15. Cash flow from investment M O. Income statement ledger

Matching 4
‘A’ ‘B’
1. General Ledger L A. Special cash fund used by a business to make small cash
2. Check H B. Hardship Allowance
3. Due Date C C. Maturity Date
4. Dishonored Note J D. Debit Memorandum
5. Non Taxable Income B E. An optional step in the accounting cycle
6. Accrued Expense G F. Example of source document
7. Invoice F G. Expense incurred but not paid
8. Petty Cash A H. A written instrument used to order the bank for payment
9. Adjusting Entry K I. Position Allowance
10. Preparing Worksheet E J. Notes pass its due date
11. Used to notify bank deductions D K. An Entry made at the end of an accounting period to update the ledger
12. Internal control over cash N L. Controlling Account
13. Special journal O M. Doubtful Account
14. Post-closing trial balance P N. Separation of Responsibilities for Recording
O. Used to record only one type of business transaction
P. Prepared after all the temporary accounts have been closed
Q. Expense paid in advance

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 Matching 5
‘A’ ‘B’
1. Advantages of direct tax C Cash flow statement
2. Equality of debit and credit A. Ledger
3. Each record in a journal B. Deposit in transit
4. Added to bank balance C. Sales tax
5. Summary of cash receipts and payments D. Journal
A E. Debit
6. Normal balance for asset account E F. Equitable
7. Book of secondary entry G. Special journal
8. List of accounts in the ledger H. Uncertainty
9. For relatively small amount of expenses I. Property tax
10. Book of original entry J. Trail balance
11. Indirect tax K. Chart of account
12. End of accounting process L. Entry
13. Direct tax M. Post-closing trail balance
14. Disadvantages of indirect tax N. Petty cash
15. Records only one type of transaction O. Income statement
G P. Outstanding checks
K Q. Credit
R. Balance sheet
M
S. Posting

Matching 6

‘A’ 1. Standards

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2. Kazan A. Credit card
3. Character of partnership B. Continues improvement
4. Character of corporation C. Cash flow statement
5. Financial statement D. Continue the life
6. Gross earning E. Retained earning
7. Interim report F. Five “S”
8. Agreement buyer and seller G. Limited life
9. The summary of revenue and expense H. Income statement
10. Reinvested shareholders dividends to next I. Used to small payment
year of business J. Supplier
11. Verbal communication K. Taxable allowance
12. Desert allowance L. A List of payment to deduct
13. Petty cash M. Nontaxable allowance
14. External users of business entity N. Sales officers managers
15. Internal users of business entity O. Report short period of time
16. Intangible asset P. Amortization
17. Gross profit Q. Written message
18. Double Decline ouble R. Accompany total sales minus direct cost
S. Accelerated depreciation
‘B’ T. T. Patent

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