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  • Accountancy Business and Management

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    MariaR
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    Accounting provides essential financial information for managers, including costs, income, tax liabilities, and financial conditions. Current assets can be converted to cash within one year, while intangible assets are nonphysical rights with value like patents and trademarks. Current liabilities must be repaid within a year, while fixed liabilities are paid over longer periods. Businesses record transactions in journals daily and post them to ledgers, with nominal accounts tracking expenses, gains and losses on the balance sheet.

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    Practice Test

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    Accounting provides essential financial information for managers, including costs, income, tax liabilities, and financial conditions. Current assets can be converted to cash within one year, while intangible assets are nonphysical rights with value like patents and trademarks. Current liabilities must be repaid within a year, while fixed liabilities are paid over longer periods. Businesses record transactions in journals daily and post them to ledgers, with nominal accounts tracking expenses, gains and losses on the balance sheet.

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    56 views2 pages

    Accountancy Business and Management

    Uploaded by

    MariaR
    Accounting provides essential financial information for managers, including costs, income, tax liabilities, and financial conditions. Current assets can be converted to cash within one year, while intangible assets are nonphysical rights with value like patents and trademarks. Current liabilities must be repaid within a year, while fixed liabilities are paid over longer periods. Businesses record transactions in journals daily and post them to ledgers, with nominal accounts tracking expenses, gains and losses on the balance sheet.

    Copyright:

    © All Rights Reserved
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    of 2

    Accountancy Business and Management

    1-Accounting provides information (D) All of the above


    on
    (A) Cost and income for managers 7-The debts, which are to be repaid
    (B) Company’s tax liability for a within a short period (year or less)
    particular year are known as
    (C) Financial conditions of an institution (A) Current liabilities
    (D) All of the above (B) Fixed liabilities
    (C) Contingent liabilities
    2-The long term assets that have no (D) All of the above
    physical existence but are rights that
    have value is known as 8-The sales income (Credit and Cash)
    (A) Current assets of a business during a given period is
    (B) Fixed assets called
    (C) Intangible assets (A) Transactions
    (D) Investments (B) Sales returns
    (C) Turnover
    3-The assets that can be converted (D) Purchase returns
    into cash within a short period (i.e. 1
    year or less) are known as 9-Any written evidence in support of
    (A) Current assets a business transaction is called
    (B) Fixed assets (A) Journal
    (C) Intangible assets (B) Ledger
    (D) Investments (C) Ledger posting
    (D) Voucher
    4-Patents, Copyrights and
    Trademarks are 10-The accounts that records
    (A) Current assets expenses, gains and losses are
    (B) Fixed assets (A) Personal accounts
    (C) Intangible assets (B) Real accounts
    (D) Investments (C) Nominal accounts
    (D) None of the above
    5-The following is not a type of
    liability 11-Real accounts records
    (A) Short term (A) Dealings with creditors or debtors
    (B) Current (B) Dealings in commodities
    (C) Fixed (C) Gains and losses
    (D) Contingent (D) All of the above

    6-The liabilities that are payable in 12-In journal, the business


    more than a year and are not be transaction is recorded
    liquidated from current assets (A) Same day
    (A) Current liabilities
    (B) Fixed liabilities (B) Next day
    (C) Contingent liabilities (C) Once in a week
    (D) Once in a month (A) Posting
    (B) Entry
    (C) Accounting
    13-The following is (are) the (D) None of the above
    type(s) of Journal
    (A) Purchase journal
    (B) Sales journal 15-The following is a statement
    (C) Cash journal showing the financial status of the
    (D) All of the above company at any given time

    (A) Trading account


    14-The process of entering all (B) Profit and Loss statements
    transactions from the journal to (C) Balance sheet
    ledger is called (D) Cash book

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