1. Which concept underlies the principle of the double entry bookkeeping in which every transaction is recorded twice?a. Dual aspect b. Cost of goodsc. Profitd. Separate entity

2. Which one of the following would be a fixed(non-current) assets?a. Stock(inventory)b. Bank overdraftc. Debtors (receivables)d. Factory premises

3. Which parts of the accounting equation are affected by paying off a loan by cash?a. Assets, capitalb. Assets, liabilitiesc. Capital, liabilitiesd. Assets, capital, liabilities

4. A debit can represent three of the following. Which is the odd one out?a. decrease in an assetsb. increase in an assetsc. decrease in an liabilityd. increase in an expense

5. Which of the following is not a book of prime entry?a. Sales day bookb. Petty cash bookc. Transfer journald. Bank account

6. Which of the following is a disadvantage of computers?a. Speedb. Accuracyc. Vulnerabilityd. File storage and processing

7. A credit can represent three of the following. Which is the odd one out?a. decrease in an assetsb. increase in an assetsc. increase in an liabilitiesd. increase in an capital

8. What is the purpose of a remittance advice?a. It provides details of amounts being paid.b. It identifies goods that have been received by the business.c. It identifies goods that have been despatched by the businessd. It provides details of cheques to be issued

9. X starts a business with $50,000 cash, buying inventory $10,000 from cash and paying business expenses of $1,000. Inventory is purchased on credit for $5,000. Following these transection, what is the capital of xs business?a. $39,000b. $49,000c. $50,000d. $54,000

10. A business received an accountants bill for $500. Which of the following statements correctly shows the effect upon the accounting equation of the business, assuming the bill is unpaid?a. Assets decrease, liabilities increaseb. Capital decrease, liabilities increasec. Capital increase, liabilities decreased. Assets decrease, capital decrease

11. Which of the following correctly records the payment of a loan of $10,000 plus outstanding interesting $500?a. Assets -$10,500, Capital -$10500b. Assets +$10,500, liabilities +$10500c. Assets -$10500, liabilities -$10,000, Expenses +$500d. Assets -$10,500, liabilities -$10,500

12. Which of the following is an example of an item of revenue expenditure?a. Insurance of goods in transit to customer.b. Import duties charged on a new non-current asset for the business.c. Delivery and installation costs of a new non-current assets.d. A new delivery van.

13. Which of the following is an example of a prime record originating outside the business?a. The cash book.b. The bank statement.c. The sales day book.d. The purchase returns day book.

14. Returns outwards are recorded in which prime entry record?a. Sales return day book.b. The journal.c. The cash bookd. The purchase return day book.

15. Credit note sent out are recorded in which prime entry record?a. Sales returns day book.b. General ledger.c. Sales day book.d. Purchase returns day book.

16. Which of the following statements is correct?a. Every debit balance represents an expenseb. Assets are represent by debit balancesc. Liabilities are represented by debit balancesd. Income is included in the list of debit balances

17. Which of the following is a bank overdraft an example of?a. An assets b. A liabilityc. Revenued. Expense

18. Andrea started a taxi business by transferring her car, worth $5,000, into the business. What are the accounting entries required to record this?a. Dr. Capital $5000 Cr.Car $5000 b. Dr. Car $5000 Cr. Drawings $5000c. Dr. Car $5000Cr.Capital $5000d. Dr. Car $5000Cr. Bank $5000

19. A business has capital of $10,000. Which of the following asset and liability figures could appear in this businesss statement of financial position (balance sheet)? Assets Liabilitya. $6,000 $16,000b. $6,000 $4,000c. $10,000 $10,000d. $14,000 $4,000

20. A business commenced with capital in cash of $1,000. Inventory costing $800 is purchase on credit, and half is sold for $1,000 , the customer paying in cash at once.The accounting equation after these transactions would show:a. Assets $1600 equals capital $1600b. Assets $2000 less liabilities $800 equals capital $1200c. Assets $2400 less liabilities $400 equals capital $2000d. Assets $2400 less liabilities $800 equals capital $1600

21. A business borrowed $1,700 from its bank, and used the cash to buy a new computer.How is the accounting equation affected by this transection?Assets Liabilitiesa. Unchanged Overstatedb. Unchanged Understatedc. Increased Increasedd. Increased Decreased

22. Which of following would be paid for by petty cash?a. Car repairs on the business owners privet vehicleb. Packet of envelopes at local store c. Paying a supplier for goods brought on credit d. Wages and salary

23. Which document is used to correct an overcharge in an original invoice?a. Credit note b. Debit note c. Goods received noted. Dispatch note

24. When does a contract become valid?a. When there has been an invitation to treatb. When there has been an offerc. When the offer is accepted d. When there has been a breach

25. Which is an example of current asset?a. Bank overdraft b. Office equipmentc. Receivabled. Payable

Teachers contact informationMd. Abdullah al mamun khan Email: 1mamunkhan@gmail.comMobile: 01191-141452, 01744-295109, 01770-997007

Teachers contact informationMd. Abdullah al mamun khan Email: 111mamunkhan@gmail.comMobile: 01744295109Page 3