Accounts - Principles of Accounts Questions
Question 1:
The term "accounting period" is used to refer to the
- A Time span during which taxes are paid to the inland revenue board
- B Budget period, usually one year, relied on by the accountant
- C Time span, usually one year, covered by financial statement
- D Period within which debtors are expected to settle accounts
Question 2:
Assigning revenues to the accounting period in which goods were sold or services rendered and expenses incurred is known as
- A Passing of entries
- B Consistency convention
- C Matching concept
- D Adjusting for revenue
Question 3:
The accounting convention which states that profit must not be recognized until realized while all losses should be adequately provided for it termed
- A Materiality
- B Objectivity
- C Consistency
- D Conservatism
Question 4:
Accounting information is used by investors and creditors of a company to predict
- A Future cash flows of the company
- B Future tax payments of the company
- C Potential merger candidates for the company
- D Appropriate remunerations for the company's staff
Question 5:
Antics Electronic Company recently bought six generators. Which of the following is the correct method of recording this transaction?
- A Debit generator account and credit cash account
- B Debit purchases account and credit cash account
- C Debit cash accounts and credit purchases account
- D Debit cash account and credit generator account