Bookkeeping and Accounting Quiz 2

Which of these are "NOT" classified as Non-Current Assets?

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The functions of accounting are _________________.

• auditing and taxation

• recording and reporting

• analyzing and interpreting

• Classifying and summarizing

Who are the users of financial reports?

• Shareholders

• Creditors

• Consumers

• Competitors

The main function of accounting is to _______________________

• prepare financial statements

• select accounting information

• do balance day adjustments

• analyse and interpret financial reports

Which of the following items are used as source documents for a business transaction/ Journal entries?

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All such operating activities that will cause fluctuations/changes in assets, liabilities or/and owners' Equity are called ____________________.

• investment

• accounting cycle

• business entries

• business transactions

Loan repayable within a year is a/an __________________.

• Income

• Non-Current Liability

• Current Liability

• Expense

Which of the following is shown in the Non-Current Assets account in Statement of Financial Position ?

Clue: It is also known as Net Book Value.

• Market Price

• Selling Price

• Carrying Amount

• Replacement Value

Which of the following items is classified as Current Assets

• Unused Stationery

• Prepaid Rental

• Rental Received in Advance

• Accrued Income

• Accrued Expenses

The main purpose of drawing up a trial balance is to check __________________________________.

• the accuracy of the double entry

• whether all the invoices have been sent out

• whether all the journal entries have been posted

• the difference between the Cash Book Balance and Bank Statement Balance