ACC101–BASI

CACCOUNTI
NGCONCEPTSBYPLATO

1.Whi choft hefol

lowingiscor r
ectofpri
ncipl
eofDoubl eEntrySyst
em
(a)foreverydebitentr
y,theremustalway sbeacorrespondingdebit
entryandv i
ceversa(b)f
orev erycr
editentr
y,t
heremustal waysbea
correspondingcr edi
tentryandv i
ceversa(c)f
oreverycredi
tentry
,
theremustal way sbeacor respondi
ngdebitentr
yandv icev er
sa
(d)alloftheabove

2.Astat
ementoffinanci
alt
r ansacti
onsofabusinessorgani
zat
ionor
companyinayearis___(a)tr
ialbal
ance(b)
tradi
ngaccount
(c)
bal
ancesheet(d)pr
ofi
tandl ossaccount

3.Wheni
ncomei
sl esst
hanexpendi
tur
einanor gani
zat
ion,
amanager
get
s__
_(a)
sur
plus(b)
accr
ues(c)def
ici
t(d)
prepayment

4.Whichoft
hef
oll
owingisNOTauserofAccount
ingInf
ormat
ion
(
a)Employ
ee(
b)Banker(
c)Economi
st(
d)WageGetter

5.Themoneysetasidef
orspeci
alpur
posei
scal
l
ed_
__(
a)sal
ary
(b)
wage(c)
reser
ve(d)
capi
tal

6.Thefat
herofAccount
ingis_
__(a)
Leonar
doDaVi
nci
(b)
Lucca
Pacci
olo(
c)AdamsSmi t
h(d)
JohnWoods

7.Liabil
it
iesminusAssetgi
ves_
__(
a)r
eser
ves(
b)capi
tal
(c)
fund
(d)subscri
pti
on

8.I
naf i
nanci
alstatementofacompany,Accr
ualsi
str
eat
edasa_
__
(
a)asset(
b)l
iabil
i
ty(c)
excer
ptofcapi
tal(
d)al
loft
heabove

9.Theprofi
tandlossaccountofasol
etr
aderi
sprepar
edtoascert
ain
___(
a)netprof
it(
b)netl
oss(c)gr
osspr
ofi
torl
oss(d)
grossgai
n

10. Whichdocumenti
susedforunder
chargeofcommodit
ies
(a)
credi
tnote(b)
debi
tnote(
c)i
nvoi
ce(d)pr
oformainv
oice

11. _
__i
susedf
orov
erchar
ge(
a)cr
edi
tnot
e(b)
debi
tnot
e
 (
c)pr
ofor
mai
nvoi
ce(
d)i
nvoi
ce

12. ___i
sa/anaccountwhichhastheli
stofalldebi
tandcredi
t
bal
ancesofanorgani
zati
on(a)suspenseaccount(b)t
ri
albal
ance
(c)
prof
itandl
ossaccount(d)
tradi
ngaccount

13. Sal
esmi nuscostofgoodssoldwill
giv
e___(a)netpr
ofi
t
(b)
costofgoodsavail
ableforsal
e(c)gr
ossprof
it(
d)grossnet

14. Costofgoodssol
ddivi
dedbyaver
agestocki
s__
_(a)
rateof
t
urnov
er(b)r
ateofst
ocktur
nover(c)
sal
eopti
on(d)
sel
li
ngpri
ce

15. Thegradual
reductioni
nthevalueofafi
xedassetis__
_
(a)
depreci
ati
on(b)
amor t
izati
on(c)
profi
ci
ency(
d)reduct
ionsyst
em

16. All
ofthefol
l
owingexceptoneisnotamethodofdepr
eci
ati
on
ofanasset(
a)sum oft
heyear(b)
reduct
ion(c)
dimi
nishi
ng
(d)
prof
ici
ent

17. Anent r
ywhi chrefl
ect
sbothonthedebi
tandcr
editsi
deofan
accountiscal
led__ _(
a)count
erchar
ge(b)
contr
aentr
y(c)i
nvoi
ces
(d)
imprestsystem

18. Intr
ialbal
ance,
all
expensesaretr
eatedi
nthe_
__(a)
credi
tsi
de
(b)
debi
tside(c)
aandbar ecor
rect(
d)noneoft
heabove

19. DiscountAll
owedistreat
edonthe___si
deoft he___account
(a)
debit
/tradi
ng(b)debi
t/pr
ofi
tandl
oss(c)
credi
t/
trading
(d)
credi
t/prof
itandloss

20. BankReconci
li
ati
onStatementcanbecalcul
atedat__
_and_ _
_
bal
ances(
a)bankandcashbookbalances(b)i
mprestandcashbook
bal
ances(
c)off
erandequi
ty(d)noneoftheabove

21. Whichofthefol
l
owingisnotanimportanceofAccount
ing
I
nformat
ion(a)
reducesfr
aud(b)cor
recter
ror
s( c)r
iskt
aki
ng
(d)
under
standi
ngeveryt
hingaboutl
ifeandbusiness

22. _
__i
snotal
i
abi
l
ity(
a)Accr
ual
(b)
Over
draf
t(c)
Loan(
d)al
loft
he
 abov
e

23. Prel
iminar
yexpensesisanexampl
eof_
__asset(
a)f
ixed
(b)
cur
rent(c)
fi
cti
ti
ous(d)mort
gage

24. Capi
tal
mi nusNetProf
iti
s___(
a)capi
tal
owned(
b)capi
tal
empl
oyed(c)
reserves(
d)war
rant

25. Anaccountinthebooksofanor ganizati

oninwhichit
emsar e
enter
edbeforeproperal
locati
ontothefinalaccountis__
_
(a)
suspenseaccount(b)cashbookaccount( c)r
etur
ninwardaccount
(d)
retur
noutwardaccount

26. Cash$1,
000forpl
antrepai
rsisenteredas$100isanerr
orof
___(
a)omi
ssi
on(b)
commi ssi
on(c)ori
ginal
entry(
d)complet
erever
sal

27. Whenanamounti scorr

ect,t
heaccountsusedar ecorrect
,but
t
heaccountthatissupposedtohavebeingdebitediscredit
edand
vicever
saisanexampleoferrorof___(
a)rever
sal ofentr
ies
(b)compl
eterev
ersalofent
ri
es(c)commission(d)pri
ncipl
es

28. ___err
ori
sthetypewhereequalandopposi
teer
ror
sleavet
he
t
r i
albal
ancebal
ancingist
he(a)post
ing(b)
compensat
ing(c)
addi
ti
on
(d)di
sguisi
ng

29. Thefull
meani ngofFASBis___(a)
FederalAssoci
ati
on
StandardBoard(b)Feder
alAssoci
ati
onStandardBoard(c)
Feder
al
AccountingStandardsBoar
d(d)noneoftheabove

30. Al
lbutonei
snotaprof
essi
onal
associ
ati
oni
nAccount
ing
(a)
ICAN(b)ACA(c)
ICA(
d)aandbarecor
rect

31. Thetwopri
maryAccounti
ngstandar
dsbodiesar
e__
_( a)
FASB
andI
ASB(b)AI
SBandFASB( c)
ISSBandISSN(d)
ISBNandISSN

32. ___accounti
ngconceptisbasedonthepremiset
hatfinancial
statementsareprepar
edont heassumpti
onthatt
hebusinesswi l
l
remaininoperati
oninfutur
eperi
ods(a)goi
ngconcern(
b)consistency
(c)matchi
ng(d)materi
ali
ty
33. Thetransact
ionsofabusinessaretobekeptseparat
efrom
t
hoseofi t
sowner sisemphasizedin___accounti
ngconcept
(a)
accrual
s( b)
businessent
it
y(c)consi
stency(d)
matchi
ng

34. Revenuesar
erecogni
zedwhenear ned,andexpensesare
recogni
zedwhenassetsareconsumedi semphasizedon_ __
accounti
ngconcept(
a)matchi
ng(b)consist
ency(c)conser
vati
sm
(d)accr
uals

35. Capi
tali
sequival
entt
o__
_(a)
roy
alt
ies(
b)pr
emi
um (
c)wor
kin
progr
ess(d)subscr
ipti
on

36. Whichoft hefol

l
owi ngisnotcorrect(a)
openi
ngst
ockplus
purchases(b)salesminussalesret
urns( c)
salesmi
nuspur
chases
ret
urns(d)costofgoodssol dplusgrossprofi
t

37. Tradi
ngAccountisprepar
edtoascer
tai
n__
_(a)
grosspr
ofi
t
(b)
netprof
it(
c)netl
oss(d)
weighloss

38. Paymentofteacher
ssalaryinaschooli
sanexampleof_
__
expendi
ture(
a)capit
al(b)
recur
rent(c)
curr
ent(
d)f
ormat
ive

39. _ _
_i sthecashamountgiv
enupf
oranasset(
a)r
eser
ve
(b)
capi
tal(c)cost(
d)depr
eci
ati
on

40. Acompanyneededt opurchase$60ofr awmat er

ial
sand
components,
andpay6l aborer
s$40each, theref
ore,
thetotal
var
iabl
ecostis_
__(a)$200(b)$300(c)$400(d)$500

41. Allbutoneisnotanel
ementofcost(
a)r
awmat
eri
al(
b)manual
l
abor(
c)expenses(d)
capi
tal

42. Wherecostofgoodssoldis10,
000nair
a,Openi
ngSt
ockis
4,000andclosi
ngstocki
s3,500.Whatist
herateofst
ockt
urnover?
(a)1.
3ti
mes( b)
1.33ti
mes(c)2.3ti
mes(d)
2.33ti
mes

43. Ifarai
l
waycoachcompanynormal
lyproduced40coachesper
month,andt
hefi
xedcost
sweresti
ll
$1000/month,theneachcoach
coul
dbesaidtoi
ncuranoper
ati
ngcost(
a)$20(b)$25(c)$30(
d)$40
44. Operat
ionsbyexchangingasset sandli
abil
i
tieswi
thother
ent
iti
esareev entscall
ed___(a)busi
nessenvir
onment(b)busi
ness
opportuni
ti
es( c)
businessst
rategy(d)busi
nesstr
ansact
ions

45. Iti
sagoldenrul
ethatAccounti
ngequati
onremainsbal
ancedat
al
lti
me(a)t
rue(b)
sometimestrue(c)
oft
entrue(d)
fal
se

46. Abookshowingstat
ementofpaymentandr
ecei
ptbal
ances
(a)
cashbook(b)j
ournal
(c)l
edger(
d)al
loft
heabov
e

47. FixedAsseti
snowr ef
err
edtoas__
_(a)
curr
entasset(
b)non
act
ionasset(
c)non-
cur
rentasset(
d)l
i
qui
dasset

48. Accounti
ngrecordswhichar enotkeptaccordi
ngtodoubl
e
entrypri
nci
plesarecall
ed__
_( a)non-pr
ofitr
ecords(b)
incompl
ete
records(c)
buoyantrecor
ds(d)imprestrecords

49. Whenassetismaint
ainatNetBookVal
ue,t
hedepr eci
ati
on
chargedonsuchasseti
sexpectedtobechar
gedagainsttheasset
account(a)
true(
b)someti
mestrue(c)
bar
elyt
rue(
d)fal
se

50. Thedif
fer
encebet
weenthecostandaccumulat
eddepr
eci
ati
on
i
sthe___(
a)NBV(b)NPV(c)
NPPV(d)al
loftheabov
e

51. Thetwoapproachesempl oy
edformai
ntai
ningnon–current
assetar
eat___and___(a)costandNBV(b)
cashandNBV( c)cash
andNPV( d)
costandNPV

52. Goodwil
lisanexampleof___(
a)f
ixedasset(
b)cur
rentasset
(c)
tangi
bleasset(d)
int
angi
bleasset

53. Baddebtar
edebtthatcannotbe_
__(
a)di
sposed(
b)r
ecov
ered
(c)
mai
ntai
ned(d)
all
oftheabove

54. NPVmeans_ __(

a)NetPr
edi
ctorVal
ue(
b)NetPer
manentVal
ue
(d)
NetPr
esentVal
ue

55. Allexceptoneisnotacauseofdepr
eciat
ion(
a)wearandt
ear
(b)
usageright
s(c)obsol
escence(
d)pat
entr
ights
56. Whichoft
hef
oll
owi
ngi
sODD(
a)cash(
b)st
ock(
c)pr
epay
ment
(d)
accr
ual
s

57. Cr
edi
tori
sanexampl
eof_
__(
a)asset(
b)l
i
abi
l
ity(
c)debent
ure
(d)
all
oftheabove

58. Asset
st hatar
epermanenti
nnaturearecal
led__
_asset
s
(a)
cur
rent(
b)non–curr
ent(c)
fi
cti
ti
ous(d)i
ntangi
ble

59. Whi chofthefol

l
owinger
rorwil
lnotaff
ectthet
ri
albal
ance
(a)
ori
ginalent
ry(b)
compensat
ing(
c)i
nterpol
ati
onoffi
gures
(d)
omission

60. _
__isthecapi
talusedforthedaytodayrunni
ngoft
hebusi
ness
(a)
workingcapi
tal(
b)author
izedcapi
tal
(c)
paidupcapi
tal
(d)
curr
ent
capi
tal

ANSWERSAREMARKEDI
NTHEI
ROPTI
ON(
S)

BESTWI
SHESFROM PLATO