Câu 1: The accounting cycle does not include:

a.Decision-making
b.Recording
c.Classification
d.Interpreting
Câu 2: The main Purpose of Financial Accounting is?

a. To minimize taxes.
b. maintain balance sheet
c.To Provide financial information to shareholders
d.To keep track of liabilities
Câu 3: The account which increases equity is known as?

a. Revenue
b. Debit Account
c. Treasury Stock
d. Credit Account
Câu 4: Which person owes an amount to a business organisation for buying
goods and services on a credit basis?

a.Debtors
b.Owner
c.None of the above
d.Creditors
Câu 5: What is Current Liability?

a.A potential liability that may occur in the future.

b. Obligations listed on the balance sheet not due for more than a year.
c.Assets of a company that are expected to be sold or used as a result of
standard business operations over the next year.
d.Company's short-term financial obligations that are due within one year or
within a normal operating cycle.
Câu 6: What are Outstanding Expenses?

a.Type of expense that is due but has not been paid.

b.The necessary purchases that keep a business going from day-to-day.
c.Expenses which are not paid off in the current balance sheet.
d.None of the above.
Câu 7: Transaction is referred as which event in accounting?

a.Political Event
 b.Cash Transaction
c.Economic Event
d.Dividend
Câu 8: Identifying an economic transaction is which phase of accounting cycle?

a.
First

b.
Second

c.
Last

d.
Third

Câu 9: What is a Company?

a.
Business organization which is owned and carried on jointly by the members of
the Hindu Undivided Family.

b.
Legal entity organized and operated for a collective, public or social benefit, in
contrast with an entity that operates as a business aiming to generate a profit
for its owners.

c.
Unincorporated business with only one owner who pays personal income tax
on profits earned.

d.
 A legal entity formed by a group of individuals to engage in and operate a
business.

Câu 10: What are Liabilities?

a.
Resources of a Company

b.
None of the above

c.
Obligations of a Company

d.
Expenses of a Company
Câu 11: What are Drawings?

a.
Accounting method used to allocate the cost of a tangible or physical asset over
its useful life or life expectancy.

b.
An increase in the value of an asset over time.

c.
The amount of cash that a business disburses.

d.
Money that is taken from the business account for personal use.

Câu 12: Accounting provides data or information on

a.
Financial conditions of the institutions

b.
All the above

c.
Income and cost for the managers

d.
Company’s tax liability for a particular year

Câu 13: Matching concept does not include one of the following:

a.
The revenues of a particular period must match with the expenses of that
period.

b.
The comparison of incomes and expenses of a period gives the net profit or loss
for that particular period.

c.
Revenues should only be recorded if there is reasonable certainty about its
realization.

d.
This concept also required allocation of cost on different accounting periods.

Câu 14: Long term assets without any physical existence but, possessing a
value are called

a.
Fixed assets
b.
Investments

c.
Current assets

d.
Intangible assets

Câu 15: Which of the following is not a feature of the separate entity concept?

a.
Personal affairs of the owner should not be considered

b.
Business and owner are treated as separate entities

c.
This concept is followed in all types of businesses

d.
Business should not be dissolved in the near future

Câu 16: Which of the following is true?

a.
Outside bodies sometimes become involved in the regulation of the audit
profession

b.
The audit profession is regulated only by the government

c.
The audit profession is regulated by its own professional body

d.
The audit profession is unregulated
Câu 17: During the accounting period, sales revenue is $25,000 and accounts
receivable increases by $8,000. How much cash is received from customers for
the period?

a.
$25,000

b.
$8,000

c.
$33,000

d.
$17,000

Câu 18: The expanded accounting equation is:

a.
Assets = Liabilities + Owner’s Capital + Owner’s Drawings + Revenues -
Expenses.
b.
Assets = Liabilities - Owner’s Capital - Owner’s Drawings - Revenues -
Expenses.

c.
Assets = Liabilities + Owner’s Capital - Owner’s Drawings + Revenues -
Expenses.

d.
Assets + Liabilities = Owner’s Capital + Owner’s Drawings + Revenues +
Expenses.

Câu 19: As of December 31, 2022, K. Company has total assets of $3,500 and
owner’s equity of $2,000. What are the liabilities for Kent Company as of
December 31, 2022?

a.
$1,000.

b.
$2,500.

c.
$1,500.

d.
$2,000.

Câu 20: Which of the following statements about an account is true?

a.
The left side of an account is the credit or decrease side.
Answer: b

b.
An account is an individual accounting record of increases and decreases in
specific asset, liability, and owner’s equity items.

c.
There are separate accounts for specific assets and liabilities but only one
account for owner’s equity items.

d.
The right side of an account is the debit or increase side.