1. Which of the following is a liability?
a) Loan from Mr.Y
b) loan to Mr.y
c) Both (a) and (b)
d) None of these
2. Purchases of goods on credit from A is recorded as:
a) Debit purchases a/c; credit cash a/c
b) Debit A a/c; credit purchases a/c
c) Debit purchases a/c; credit A a/c
d) Debit A a/c; credit stock a/c
3. Payment received from debtor:
a) Decreases the total assets
b) Increases the total assets
c) Results in no change in total assets
d) Increase the total liabilities
4. The transferring of debit and credit items from journal to the respective accounts in the ledger is
called as
a) Ledger
b) Posting
c) Forward journal
d) None of these
5. The following comments all relate to the recording process. Which of these statements is correct
a) The general ledger is a chronological record of transactions.
b) The general ledger is posted from transactions recorded in the general journal.
c) The trial balance provides the primary source document for recording transactions into the general
journal.
d) Transposition is the transfer of information from the general journal to the general ledger.
6. Cost accounting information can be used for:
a) Budget control and evaluation.
b) Determining standard costs and variances.
c) Pricing and inventory valuation decisions.
d) All of these
7. Current liability does not include
a) Sundry creditors
b) Acceptances
c) Unclaimed dividend
d) Short term investment
8. The term Management Accounting was first used in
a) 1910
b) 1939
c) 1950
d) 1960
9. ______________ system records only actual cash receipts and payments
a) Cash basis
b) Accrual basis
c) Mercantile basis
d) Single entry basis
10. Aggregate of direct costs is known as:
a) Direct material costs
b) Direct Wages
c) Direct Expenses
d) Prime Cost