Self Grading MCQs Test covering Topic 6 - 10
Which of the following will affect the agreement of a trial balance?
a) Complete omission of a transaction
b) Partial omission of a transaction
c) Error of principle
d) Compensating errors
If a transaction is completely omitted from the books of accounts, will it affect the agreement of a trial balance?
c) Transactions can't be omitted
The most common imprest system is the ........ system
a) petty cash
b) Cash book
c) Cash receipt
Introduction of capital by owner of business is recorded on which side of a cash book?
A company was entered in hire purchase agreement and had to pay $1000 per month.Three payments were made via bank account but no entry was found in cash book. Identify the correct adjustment in cash book
a) $1000 will be added to cash book balance
b) $2000 will be deducted from cash book balance
c) $3000 will be added to cash book balance
d) $3000 will be subtracted from cash book balance
Bank sent debit advice of $500 to company being interest on overdraft. It wasn't entered in cash book. Identify the correct adjustment in cash book
a) $500 will be debited
b) $500 will be credited
d) $1000 will be subtracted
Which of the following adjusting double entries is correct for Prepaid expenses?
a) DEBIT= Expenses, CREDIT= Prepaid expenses
b) DEBIT= Prepaid expenses, CREDIT= Expenses
c) DEBIT= Cash, CREDIT= Prepaid expenses
d) DEBIT= Expenses, CREDIT= Cash
If Rent expenses=$5000, Insurance expenses=$4000, Prepaid rent expenses=$3000. What amount of total expenses will be shown in income statement?
Exercising a degree of caution in the case of judgments needed under the condition of uncertainty is assumption of which of the following accounting concepts?
a) Matching concept
b) Timeliness concept
c) Accrual concept
d) Prudence concept
Land on lease should be shown in balance sheet contrary to fact that company doesn't own this piece of land. This is the statement of what accounting concepts?
a) Matching concept
b) Accrual concept
c) Prudence concept
c) Substance over form Concept