BOOK KEEPING

Which of the following is the primary objective of bookkeeping?

• A) To calculate profit or loss

• B) To record financial transactions

• C) To manage inventories

• D) To prepare payroll

A list of balances extracted from the ledger at a particular date is called a:

• Trial balance

• Balance sheet

• Trading account

• Income statement

Which of these is not recorded in a trial balance?

• Sales

• Closing stock

• Purchases

• Rent expense

The balance of which of these accounts is transferred to the profit and loss account?

• Fixed assets

• Purchases

• Capital

• Sales

What is the function of the journal in bookkeeping?

• To record all cash transactions

• To correct errors in the ledger

• To record details of non-cash transactions

• To prepare the trial balance

Which of these represents money owed by the business to others?

• Debtors

• Creditors

• Stock

• Cash

Which accounting concept states that financial statements should reflect the transactions of a business only and not its owners?

• Business entity concept

• Accrual concept.

• Going concern concept.

• Matching concept.

The owner’s withdrawal of goods for personal use should be debited to:

• Sales account

• Purchases account

• Drawings account

• Capital account

The dual aspect concept means that:

• Every transaction affects two accounts

• Every transaction should be recorded twice

• Every transaction has a revenue and expense side

• Every transaction has an owner’s equity aspect

A statement showing the financial position of a business at a particular date is called:

• Trial balance

• Balance sheet

• Trading account

• Profit and loss account