St.

Anthony’s TVET College Emdibir

Department of Accounting and Finance
Title of Occupation: Prepare Financial Reports

Name-------------------------------------sex-------------------ID--------------------
Choose the Best Answer
1. Under the cash basis of accounting, the organization’s revenues are recorded in the
accounting period when cash is received and expenses are recorded when cash is paid.
A. True B. False
2. Accountants use the T-account format to enter the values for each account so that they
are easier to visualize.
A. True B. False
3. --------------------------are amounts that have been invested by the business into
financial instruments or securities such as shares, debentures and bonds.
A. Intangible assets B. Tangible assets C. Investments or financial assets
D. None
4. Tangible assets are also known as ‘property, plant and equipment’ or ‘fixed assets’.
They are physical assets.
A. True B. False
5. A Fixed Asset Register is an accounting method used for major assets of an
organization.
A. True B. False
6. ------------------------is the default method used to gradually reduce the carrying amount
of a fixed asset over its useful life.
A. Straight line depreciation B. Using the Sum of Years Depreciation
C. Using the Double-Declining Balance Depreciation D. None
7. Allowance method is a better alternative to the direct write-off method because it is
according to the matching principle of accounting.
A. True B. False
8. A --------------------is an account receivable that has been clearly identified as not being
collectible
A. Doubtful debt B. Bad debt C. A&B D. None
9. The bad debts expense account, just like any other expense account, is closed to
---------------------account of the period
A. balance sheet B. income statement C. cash flow D. All
10. The allowance for doubtful debts is contra-asset account.
A. True B. False