Accounting Test Practice - Grade 10

A business owned by two or more people who share profits and responsibilities is called …

• Corporation

• Cooperative

• Partnership

• Franchise

• Sole Proprietorship

The main advantage of a corporation is …

• Unlimited liability

• Limited liability

• Difficult to raise capital

• Easy to dissolve

• Owned by one person

The main goal of creditors is to …

• Receive interest and repayment

• Receive dividends

• Control business operations

• Supervise accounting

• Manage the company

External stakeholders include …

• Employees

• Managers

• Suppliers

• Owners

• Directors

Internal stakeholders include …

• Shareholders and suppliers

• Managers and employees

• Government and NGOs

• Customers and creditors

• Public and investors

One benefit of using accounting software is …

• More manual work

• Real-time data processing

• Higher error rates

• Increased storage costs

• Outdated reporting

An example of accounting software is …

• Excel

• SAP

• Photoshop

• Word

• Canva

The accounting principle that records assets at their original purchase price is called …

• Historical Cost Principle

• Matching Principle

• Going Concern

• Prudence Principle

• Revenue Recognition

Expenses should be recorded in the same period as the revenue they help generate. This refers to …

• Prudence Principle

• Consistency Principle

• Matching Principle

• Going Concern

• Historical Cost

The principle requiring caution and avoiding overstatement of income is …

• Prudence

• Accrual

• Matching

• Revenue Recognition

• Historical Cost