1-Accounting provides information on

(A) Cost and income for managers

(B) Company’s tax liability for a particul

(C) Financial conditions of an institution

(D) All of the above

2-The long term assets that have no physical existence but are rights that have value is known as

(A) Current assets

(B) Fixed assets

(C) Intangible assets

(D) Investments

3-The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as

(A) Current assets

(B) Fixed assets

(C) Intangible assets

(D) Investments

4-Patents, Copyrights and Trademarks are

(A) Current assets

(B) Fixed assets

(C) Intangible assets

(D) Investments

5-The liabilities that are payable in more than a year and are not be liquidated from current assets

(A) Current liabilities

(B) Fixed liabilities

(C) Contingent liabilities

(D) All of the above

6-The debts, which are to be repaid within a short period (year or less) are known as

(A) Current liabilities

(B) Fixed liabilities

(C) Contingent liabilities

(D) All of the above

7-The sales income (Credit and Cash) of a business during a given period is called

(A) Transactions

(B) Sales returns

(C) Turnover

(D) Purchase returns

8-The accounts that records expenses, gains and losses are

(A) Personal accounts

(B) Real accounts

(C) Nominal accounts

(D) None of the above

9.Which financial statement displays the revenues and expenses of a company for a period of time?

a.INCOME STATEMENT

b.BALANCE SHEET

c.CASH FLOW STATEMENT

d.STATEMENT OF STOCKHOLDER’S EQUITY

10. What is the main purpose of financial accounting?

a.ORGANIZE FINANCIAL INFORMATION

b.PROVIDE USEFUL, FINANCIAL INFORMATION TO OUTSIDERS

c.KEEP TRACK OF COMPANY EXPENSES

d.MINIMIZE COMPANY TAXES

11. Which of these is not included as a separate item in the basic accounting equation?

a.ASSETS

b.REVENUES

c.LIABILITIES

d.STOCKHOLDER’S EQUITY

12. Which financial statement uses the expanded accounting equation?

a.INCOME STATEMENT

b.BALANCE SHEET

c.CASH FLOW STATEMENT

d.STATEMENT OF STOCKHOLDER’S EQUITY

13. The accrual basis of accounting records revenues when they are:

a.COLLECTED

b.EARNED

c.CONTRACTED

d.READILY AVAILABLE FOR USE

14.Asset accounts have what type of balance?

a.DEBIT

b.CREDIT

c.CONTRA

d.ALL OF THE ABOVE

15. Which account is not a liability account?

a.ACCOUNTS PAYABLE

b.ACCRUED EXPENSES

c.CASH

d.NOTES PAYABLE

16. Which account increases equity?

a.EXPENSES

b.WITHDRAWALS

c.TREASURY STOCK

d.REVENUES

17. A contra asset account has what type of balance?

a.DEBIT

b. CREDIT

c.CONTRA

d.ALL OF THE ABOVE

18. The main purpose of preparing a bank reconciliation statement is?

(a) To know the bank balance

(b) To know the balance of bank statement

(c) To correct the cash book

(d) To identify causes of difference between cash book and bank statement

19. Bank reconciliation statement is?

(a) Part of bank statement

(b) Part of the cash book

(c) A separate statement

(d) a sub-division of journal

20. Uncollected checks are also known as?

(a) Outstanding checks

(b) Uncleared checks

(c) Outstation checks

(d) Both b & c

21. Favorable balance means?

(a) Credit balance in the cash book

(b) Credit balance in Bank statement

(c) Debit balance in cash book

(d) both b and c

22. When check is not paid by the bank, it is called?

(a) Honored

(b) Endorsed

(c) Dishonored

(d) a & b

23. A bank reconciliation statement is prepared by?

(a) Banker

(b) Accountant of the business

(c) Auditors

(d) Registrar
24. Which of the following would not affect bank reconciliation?

(a) Dishonored check

(b) Discount received

(c) Bank interest

(d) Check not presented

25. Which of the following is not an expense account?

a. Cost of Goods Sold

b. Depreciation

c.Dividends

d.Utilities

26. Assets that lack physical substance.

a. Cash

b. Prepayment

c. Intangible Assets

d. Short-term Investments

27. The side of the account where increases in the balance of such account are recorded.

a.debit balance

b.credit balance

c.trial balance

d.normal balance

28. Which of the following is an internal user of financial information?

a.public

b.BIR
c.management

d.government agencies

29. Employees are mainly concerned with

a. The company's ability to provide other employment opportunities.

b.The management's plan to expand the company.

c. The company's ability to pay salaries.

d. The company6bobligatoon to pay ots obligations.

30. Of all the users of financial information which group would least likely examine a company's financial
statements?

a. General Public

b. Government

c. Creditors

d. Customers